Mapeley, the Fortress Investment Group-owned UK real estate investor, has lost control of 25-strong Delta portfolio valued at around £115m, after the senior debt syndicate appointed Allsop as LPA receiver.
Jon Gershinson has been appointed as LPA receiver at the end of March, thought to be alongside Simon Davidson and Ania Packman, by a bank consortium comprised of the Royal Bank of Scotland, Handelsbanken, Helaba and ING Real Estate Finance.
CoStar News understands that Helaba has the largest share of the senior club loan, at 33%, with RBS and ING at around 25% each and Handelsbanken with the balance.
This is the fourth UK secondary regional portfolio which Mapeley has lost control of due to a sustained fall in values of the secondary assets, at circa £115m according to a recent CBRE re-valuation – relative to the outstanding debt, at around £136.5m at the end of last year, implying an estimated 119.7% LTV.
RBS spun its share into Isobel, which remains 25% owned by Blackstone who leads the asset management of all underlying positions.
According to the prospectus for Isobel Finance, the original £152m seven-year term facility in 2007 was restructured in February 2012, following a financial covenant breach, with the outstanding balance having fallen to £137.1m as at 2 July 2012, of which the Isobel share was £34.7m.
By the December interest payment date (IPD) for Isobel Finance – the securitisation of the loan RBS underwrote to finance its joint venture purchase of Project Isobel with Blackstone – the unpaid whole loan balance is now at £136.5m, according to the latest quarter investor report by loan servicer Capita Asset Services.
The 25-strong Delta portfolio has fallen in value from £140.6m at the end of 2010 to around £115m, while there are four separate interest rate swaps – with maturities ranging from October 2017 and January 2020, which will crystallise breakage costs relative to the April 2015 loan maturity.
The Delta portfolio includes:
- a circa 66,000 sq ft data centre in Cardiff let to BT at a £3.8m rent per annum and a weighted average lease term (WALT) of seven years and a recent valuation of around £45m
- the 200,000 sq ft The Triad on Stanley Road in Bootle, let to HMRC, at £1.7m annual rent and a WALT of nine years, with an approximate valuation of £13m
- a 61,000 sq ft call centre in Greenock let to T-Mobile, now part of Everything Everywhere, at rent of £720,000 on a 14 year WALT, valued at around £5m
- the 83,000 sq ft Imperial Court in Liverpool, for which the government tenant lease expires in around 18 months, which currently provides £1.2m in annual rent. Accordingly the value is placed at around £7.5m
- There are 12 additional properties valued at under £2m each.
Since the Isobel Finance securitisation, while the occupancy level has risen from 73.8% to 81.2% to the December IPD, the total gross rent for the Delta portfolio has fallen from £14.2m to £12.2m, driven by two asset disposals.
All parties declined to comment.
Mapeley loan enforcements since last summer
Four Mapeley portfolios, all financed with securitised loans, are at various stages of piecemeal disposal.
JLL handed £75m Mapeley portfolio
The first, the 18-strong Mapeley portfolio, was transferred to Jones Lang LaSalle’s LPA receivership team by loan servicer Hatfield Philips.
Robert Baldwin and Jemma McAndrew of JLL were appointed by Hatfield last July as the special servicer on the defaulted DECO 6 – UK Large Loan 2 CMBS loan, with Cordatus Real Estate appointed as asset manager.
There are a further two properties in Scotland, for which a separate receiver is to be appointed.
The aggregate original individual property valuations by CBRE and Knight Frank amounted to £244.82m, with a vacant property value (VPV) of £169.82m – contrasting sharply with an updated valuation of £74.74m, as at 31 January 2012.
The valuation drop of £170.08m puts the current LTV – against the £170.91m in outstanding debt – at an eye-watering 228.7%.
For the full list of this portfolio, please click here.
DTZ takes on £116m Gamma portfolio
Last December, Hatfield Philips appointed DTZ on the £116m UK secondary office Gamma portfolio, following the acceleration of the defaulted DECO 11 CMBS loan.
Bryn Williams, head of UK corporate recovery, and Fergus Jack, head of London & South East corporate recovery, were appointed as joint LPA receivers and are running a beauty parade to appoint an asset manager.
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.
For the full story, together with the largest assets, please click here.
Solutus hands First Investments LPA receiver role on Beta portfolio
Solutus Advisors appointed First Investments as LPA receiver over the 16-strong Beta portfolio – also known as the Mapeley II loan – in mid-January.
Mapeley’s “Beta” portfolio has fallen in value by 51.7% in the six years to January 2012 – from £278.1m to £134.29m, according to DTZ – driven by the collapse and lack of recovery in regional market values, a run-off in leases and an absence of capex to sustain individual property’s fullest value.
Carrie Sharp and Neil Forkin of First Investments were appointed as joint LPA receivers by Solutus. Carrie Sharp of First Investments was previously a director at Solutus Advisors.
The Beta portfolio, which has a net rentable floor area of 1.18m sq ft, includes the 246,004 sq ft Microsoft Campus office complex in Reading, which was bought in 2005 for £104.3m, and is now estimated to be valued at between £70m to £80m, after tenant Microsoft signed a new 15-year lease extension in 2012.
First Investments is understood to have received expressions of interest in the Microsoft Campus.
For the full story, and the largest assets in the Beta portfolio, please click here.
Columbus portfolio in borrower-led workout
Mapeley’s Columbus portfolio, now with less than 168-assets valued at around £100m, is in a borrower-led workout between Mapeley and Morgan Stanley Mortgage Servicing (MSMS).
The portfolio – also known as the Santander portfolio – has a vacancy rate of 25% and is predominantly comprised of regional offices let to Santander, including at the time of the securitisation the loan’s eight largest assets comprising three in Milton Keynes, one in Glasgow, Bradford, Sheffield, Stockton-on-Tees and Fareham.
The loan defaulted on its July 2012 maturity date and was transferred into special servicing and is currently subject to a standstill agreement that is renewable on a quarterly basis until July 2013.
There is an estimated £13m mark-to-market interest rate swap which has nine further years to run. Mapeley and MSMS are working through a piecemeal disposal strategy.