DTZ has been appointed as LPA receiver over Mapeley’s £116m UK secondary office Gamma portfolio, enforced yesterday afternoon by special servicer Hatfield Philips International (HPI), CoStar News can reveal.
Bryn Williams, head of UK corporate recovery, and Fergus Jack, head of London & South East corporate recovery, at DTZ have been appointed as joint LPA receivers by Hatfield, following the acceleration of the defaulted DECO 11 CMBS loan.
Hatfield is still to appoint an asset manager for the portfolio, likely to be determined in the New Year, after which the special servicer will devise an asset management strategy with the appointee alongside DTZ’s Williams and Jack.
Lambert Smith Hampton has been appointed as property manager.
The defaulted loan, which has an outstanding balance of £217.14m, was accelerated by Hatfield following a re-valuation of the UK secondary office portfolio by DTZ in August.
DTZ’s valuation returned a portfolio value of £116.2m, reflecting a 62.3% collapse in value from the Gamma portfolio’s £308.3m aggregate purchase price.
This puts the Gamma portfolio, assembled by the Fortress Investment Group-owned Mapeley during 2005 and 2006, at a current LTV of 186%.
The portfolio vacant possession value was also revealed by DTZ at just £51.4m.
The 1.75m sq ft Mapeley Gamma portfolio comprises 24 secondary office assets across the UK, with a lease expiry spike 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, which was bought for £65m, with a historic vacant possession value of £46.75m;
- The 245,064 sq ft Leon House in Croydon, which was bought for £53.2m, with a historic vacant possession value of £35.4m;
- The 93,877 sq ft 58 Clarendon Road in Watford, which was bought for £35.8m, with a historic vacant possession value of £23.2m;
- The 193,856 IBM Campus in Warwick, which was bought for £29m, with a historic vacant possession value of £20.5m;
- The 146,207 sq ft Nelson Gate in Southampton, which was bought for £24.1m, with a historic vacant possession value of £19.3m.
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 Mapeley’s once 228–strong property empire.