Real estate securitization converts property assets into tradeable securities. The property moves into a compartment that Luxembourg law ring-fences from every other deal on the platform, and that compartment issues a note carrying its own ISIN. Every compartment is bankruptcy remote and off-balance sheet under the Luxembourg Securitization Law of 22 March 2004.
MTCM runs real estate securitization out of ring-fenced compartments held in its six Luxembourg SPVs. Each building or portfolio has a compartment to itself and an ISIN of its own, walled off in law from the rest of the platform, bankruptcy remote both ways and off the originator’s balance sheet. The underlying can be a trophy building, a let portfolio, a development scheme or secured property lending. The platform’s legal framework is advised by GSK Stockmann. The audit is carried out by PwC and by Atwell, a Luxembourg audit firm.
Held in custody, transferred or listed like any other security.
Segregated by law from every other transaction on the platform.
Protection runs in both directions.
The exposure leaves the originator’s balance sheet.
Landmark properties in prime locations, each structured in its own compartment with its own ISIN.
Let buildings with contracted rental streams, such as student housing and care homes.
Equity positions in property companies or joint ventures, structured as a transferable note.
Senior, mezzanine or bridge lending secured on property, structured as debt instruments.
Offices, retail and logistics assets, single-tenant or multi-tenant.
Long-dated concession and availability-based assets with contracted cash flows.
Warehousing, manufacturing and light industrial units, typically on long leases.
Hotels, resorts and leisure assets structured around the operating business.
Ground leases, usufruct and long-term usage rights separated from freehold ownership.
Schemes combining residential, commercial and hospitality components in one compartment.
Real estate securitization is the process of converting property assets into tradeable securities. The property is placed in a compartment of a Luxembourg SPV, ring-fenced by law, and a note carrying its own ISIN is issued against it. The note can be held in custody, transferred or listed.
A compartment is a legally ring-fenced section inside a securitization SPV, with its own assets, liabilities and ISIN. MTCM operates six Luxembourg SPVs, each holding multiple compartments. Because compartments are segregated by law, one transaction cannot be affected by any other on the platform.
Commercial, industrial and mixed-use buildings, hospitality assets, infrastructure projects, development schemes, ground leases and usage rights, equity stakes in property companies, and secured real estate lending. Under open architecture, any real estate exposure that can be identified and valued can be mapped into a compartment.
No. MTCM is a securitization boutique, not a bank, a fund, an asset manager or an investment adviser. MTCM designs and administers the vehicle from which the instrument is issued, and does not manage third-party capital. Managing the property itself stays with the originator or the manager they appoint.
A fund issues units and is governed by fund regulation. A securitization compartment issues debt securities under the Luxembourg Securitization Law. The note is a security with its own ISIN, so it can be booked by investors whose mandate allows notes but not fund units.
Wealth managers, external asset managers, private banks and family offices that need a compliant structure for a client, and project developers or property owners who want to make an asset bankable. MTCM works with qualified investors and structures the vehicle behind the transaction.
| Underlying | Typical note form | What drives the compartment |
|---|---|---|
| Let building, existing leases | Fixed-rate note, defined maturity | Contracted rental stream |
| Development scheme | Zero-coupon or bullet note | Margin realised on completion |
| Secured property lending | Senior or mezzanine debt note | Loan interest and amortisation |
| Equity stake in a propco | Participating note | Distributions and disposal proceeds |
| Ground lease or usufruct | Long-dated amortising note | Contracted lease payments |
80+ active compartments · €2.5 bn+ assets structured. Indicative platform figures.