CR to sell Deutsche Telekom-backed portfolio and a German RBS retail pool

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.

CR IM logoHatfield 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.

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
Gallery | This entry was posted in Banks, CMBS, Lenders, Market Trends, Private equity real estate, Refinancings and tagged , , , . Bookmark the permalink.

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