Hatfield Philips finally unseated on Windermere XIV at third attempt

Hatfield Philips International (HPI) has been unseated as the master loan servicer on the remaining three Windermere XIV CMBS loans at the third attempt, in a move instigated by class A noteholder PIMCO.

Mount Street logoOne year on from the second of the two failed attempts by Lone Star either side of Christmas 2012, a PIMCO-led consortium of the class A noteholders, which is also thought to include HSBC Asset Management, have voted to replace HPI with Mount Street on the remaining Windermere XIV CMBS loans it still services.

The affected loans comprise the €252.2m Fortezza II Loan, the €53.9m Baywatch Loan and the €35.8m GSI Loan. Mount Street, which CoStar News understands is in final discussions to acquire Morgan Stanley’s €3.3bn ELoC CMBS platform, assumed the loan management of the €81.9m Sisu Loan last July.

U.S. Bank Trustees Limited, the trustee for Windermere XIV, confirmed this afternoon that extraordinary resolutions to terminate HPI’s master servicing responsibilities had been “duly passed”.

To pass, at least 50% of the class A noteholders were required to attend and with more than 75% of noteholders voting in favour of the resolutions.

Lone Star, who owns the junior loan beneath the CMBS, acquired the bonds in its Excalibur acquisition two years ago and then flipped the senior CMBS bonds to Credit Suisse, who in turn sold the majority of the stake piecemeal to fixed income investors in CMBS.

HPI published a detailed presentation updating noteholders on events within the CMBS’ remaining three loans under its management on 14 January, one day before the maturity of the major remaining CMBS loan, the €252.2m Fortezza II Loan.

However, this has proved insufficient to prevent the change in loan servicer.

Lone Star’s first attempt to unseat HPI was mired in controversy in what Lone Star described as “illegitimate voting actions” of one investor and that in both attempts “over 70% of the votes cast were in favour of Hatfield Philips’ removal – a clear message that most investors are manifestly dissatisfied with their performance.”

Lone Star was not involved in the effort which finally unseated HPI on Windermere XIV.

All parties declined or were unavailable to comment.


About CoStar News

Finance Editor, CoStar News
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