JLL assists SCPG to successfully issue first CMBS
Thanks to our rich experiences in the field of asset appraisal, we were able to use a wide range of property valuation methods to evaluate the mortgage value of SCP Plaza.
SCPG's first CMBS
“We owe our success in assisting SCPG’s first entry into the capital market since it joined Vanke’s commercial real estate platform to our long-term effort and dedication in the real estate industry. We will continue to assist our clients when it comes to consolidating stock reserves so as to help them realize their visions.”
SCP Plaza is a specialized project developed by SCPG Commercial Property, with a total construction area of approximately 210,000 m2, of which the shopping area makes up around 60,000 m2, and office space about 70,000 m2. The underlying asset is the core property in Shenzhen which is held and operated in Shenzhen by SCPG - SCP Plaza. JLL’s Corporate Appraisal & Advisory team in the Greater China region was appointed as the asset appraisal agency for this project. We provided professional consulting services on asset valuation and cashflow forecasting, and assisted SCPG to successfully issue its first CMBS. To help facilitate this process, the focus of our job was to accurately assess the value of the asset and predict its future potential.
During the process of this valuation, we carried out meticulous analysis of the commercial and office property market in the area of the underlying asset. Thanks to our rich experiences in the field of asset appraisal, we were able to use a wide range of property valuation methods to evaluate the mortgage value of SCP Plaza. By integrating the existing leasing information of the underlying asset with the leasing status and prospects of the property on the market, we carried out a rigorous scientific forecasting procedure, and provided a valid and balanced forecast for the net leasing income of SCP Plaza between the period from June 1st, 2017 to December 31st, 2035.
Finally, on October 20th 2017, the "CICC-SCP Plaza Trust Beneficiary Rights Asset Support Program" was successfully issued, realizing a distribution scale of 3.79 billion yuan, with a security period of 12 years, in which there was a priority A grade of 2.596 billion RMB, priority B grade of 1.004 billion RMB, and a secondary level of 190 million RMB. The priority A-level credit rating achieved was AA+.