Allen & Overy advises on building society first

Allen & Overy advised the Bristol & West Building Society in a u150 million commercial mortgage securitisation secured on investment property.

The deal is believed to be the first of its type.

A total of u150 million of Commercial Mortgage Backed Securities were issued, underwritten, and lead managed by Goldman Sachs. Around 83 per cent of the issue is expected to receive an AAA rating.

The deal converts mortgage assets into cash. It will enhance Bristol & West's capital base and its capacity to extend its lending further, including that in the commercial market, says the society.

Other building societies are expected to follow suit with similar Stock Exchange securitisations.