CR Investment Management (CR) has been separately mandated to asset manage and sell two Germany real estate portfolios comprised of 20 assets currently valued at just over €115m.
Hatfield Philips International (HPI) has appointed CR to sell a 12-strong portfolio of Deutsche Telekom offices throughout secondary locations in Germany and is the collateral for the DT 12 Loan, which forms part of the legacy €739m Talisman 4 Finance CMBS issued by ABN Amro in August 2006.
The circa 153,000 sqm Deutsche Telekom (DT) portfolio, acquired through a sale-and-leaseback by listed Israeli real estate investor Summit Real Estate Holdings, in 2006 for around €220m, financed by ABN Amro with a €176m senior loan.
The DT portfolio has valued in February at €90.68m, a 31.7% fall since the previous valuation in November 2012, driven by a run off in the portfolio weighted average lease term (WALT) from 4.5 years to 3.3 years.
A string of lease terminations within portfolio have occurred, including the assets at Nürnberg, Mannheim, Magdeburg, Düsseldorf and Düsseldorf, for which potential re-development options were previously under consideration, according to the HPI presentation dated 28 March.
Against the €90.68m February valuation is an unpaid balance of €162.9m as at the January interest payment date (IPD), which takes the current LTV to 179.68%.
CR is now expected to carry out some asset management, including lease re-gearing, before bringing the portfolio to market for sale in the fourth quarter and will target investors and developers for acquire the portfolio in part of whole.
HPI has indicated a timeline of second quarter of 2015 for a resolution to repay Talisman 4 Finance noteholders.
Separately, Royal Bank of Scotland has appointed CR to asset manage and sell an 8-strong predominantly retail property portfolio, following the bank’s enforcement over a legacy defaulted loan.
The fully let portfolio is predominantly situated in north-west Germany, totalling circa 39,000 sqm, and is currently valued at €25m with an apprximate portfolio level annual rent roll of €3m.
CR will negotiatiate with incumbent tenants to re-gear leases to improve value before a sale of the portfolio, also in the fourth quarter.
Investors will have the opportunity to bid for the whole portfolio, two sub-portfolios or for single assets.