The transaction takes Thinktank's total securitisation issuance of $7.5 billion
Independent property lender Thinktank has closed its first 2024 residential mortgage-backed securities (RMBS) issue amounting to $750 million.
Thinktank, which specialises in commercial and residential mortgages, said the launch size was initially at $500 million but was increased to $750 million due to “strong investor demand.”
The final order book was 1.5 times oversubscribed, reaching over $1.1 billion. This transaction takes the property lender to a total securitisation issuance of $7.5 billion.
Thinktank CEO Jonathan Street (pictured above) said the transaction marks a “strong start” of 2024 for the company and the market with the participation of existing and new investors into its RMBS program.
A total of 22 institutional investors took interest in the final order book, 60% of which represented domestic accounts, while 40% represented offshore participants.
Bank balance sheets accounted for 61% of the final order book and the rest came from real money investors.
The RMBS pool of 1,200 mortgages had an average loan size of $624,982. About 94% of the properties reside in major metropolitan areas, while 6% were in urbanised non-metro areas.
Thinktank said the RMBS issuance shows the “sustained quality” of the company’s long-term commercial and residential loan books over the long term.
According to Street, the lender will continue to maintain a “positive outlook” for the small- and medium enterprises and the self-employed sector amid high-interest rate challenges.
“And we remain committed to continuing to expand our support for this critical part of the Australian economy,” Street said.
