Hatfield Philips International has enforced against Mapeley’s 24-strong UK-wide office portfolio after an August re-valuation by DTZ revealed that the secondary Gamma portfolio had collapsed in value by 62.3% to £116.2m in the last eight years.
Lambert Smith Hampton has been appointed as property manager. Hatfield Philips is to appoint an asset manager with whom it will develop and “implement a programme to improve the performance and value of the properties with a view to disposing of the same on or before the loan maturity date”.
The outstanding £217.14m Mapeley Gamma loan, part of Deutsche Bank’s 2006-issued DECO 11 CMBS, has a current LTV of 186% for the 24-strong office portfolio which also has a revised vacant possession value of just £51.4m.
Mapeley, the Guernsey-based property outsourcing company majority-owned by Fortress Investment Group, has been caught out by purchasing UK secondary commercial property before the credit crunch which collapsed in value, barely recovered, and suffered the further blows of weakening regional occupier and financing markets.
Five weeks ago, CoStar News undertook a detailed analysis of all five of Mapeley’s distressed UK secondary portfolios which highlights the extent of the collapse in both the size and value of the once 228–strong property empire.
The 1.73m sq ft 24-strong Gamma portfolio was assembled at a cost of £308.3m between 2005 and 2006 and has a spike in lease expires in 2014 and 2015 worth around £6.3m and a weighted unexpired lease term of 4.84 years.
The current total rental income is £14.22m, with the four largest tenants: Diligents, IBM UK, KPMG and HSBC Bank. The five largest properties are:
- The 344,477 sq ft Lynch Wood Park in Peterborough was bought for £65m, with a historic vacant possession value of £46.75m;
- The 245,064 sq ft Leon House in Croydon was bought for £53.2m, with a historic vacant possession value of £35.4m;
- The 93,877 sq ft 58 Clarendon Road in Watford was bought for £35.8m, with a historic vacant possession value of £23.2m;
- The 193,856 IBM Campus in Warwick was bought for £29m, with a historic vacant possession value of £20.5m;
- The 146,207 sq ft Nelson Gate in Southampton was bought for £24.1m, with a historic vacant possession value of £19.3m.