Sunrise Properties, an investment vehicle separately owned by the co-founders of CR Investment Management, has completed the €360m purchase of the Sunrise portfolio, financed by a three-year whole loan from HSH Nordbank at circa 80% loan-to-cost.
Sunrise is 127-strong predominantly retail German property portfolio formerly owned by Treveria, which was financed by a loan securitized – dubbed the Orange Loan – by ABN Amro in the fruit-themed Talisman 6 CMBS.
Former owner Treveria lost control of the portfolio in October 2012 after HPI declined to grant the specialist German retail property investor a second 12-month extension on the Orange Loan – also known as the Treveria Silo E Portfolio – after LTV and occupancy targets to secure the extension were not met.
Hatfield Philips International (HPI), the special servicer on the defaulted Orange loan, instructed JLL to sell the German property portfolio in August.
Project Sunrise is comprised of mainly commercial real-estate assets across prime locations in Germany including Gloria Galerie retail complex in the heart of Berlin, two shopping centres in Wilhelmshaven and Solingen and department stores in Brühl, Euskirchen and Koblenz.
However, post-notarisation a significant proportion of Sunrise was sold, including the Gloria Galerie, the largest asset in the portfolio, to a German developer.
CR, which will act as asset and investment manager to Sunrise, notorised the transaction in December. Cerberus was the underbidder.
Sunrise Properties UK Limited is an investment vehicle separately owned by CR’s shareholders Jacob Lyons, Claudius Meyer, Stephen Benson and Torsten Hollstein as well as Swiss-based HFS Helvetic Financial Services.
In a statement, Jacob Lyons said: “HSH took the initiative by going the extra mile to prove commitment and certainty of execution. The bank demonstrated the highest standards of professionalism and a genuine appreciation of the meaning of relationship banking.”