A trio of distressed shopping centres is moving into special servicing after its owner did not cure the default on its loan.
Mezzanine lender DRC Capital had taken control of the Kingsgate Shopping Centre in Dunfermline, the Vancouver Quarter in King’s Lynn and the Rushes Shopping Centre in Loughborough after previous owner Oaktree defaulted on its Elizabeth Finance loan last year.
The debt fund manager has not cured the breach on the loan after it defaulted again last month, according to a regulatory filing.
Debt servicer CBRE will now consider its options with regards to either waiving the breach, or taking control of the properties.
The latest default notice came after the properties were collectively revalued £68.9m, down by roughly 20% on its valuation in January 2019.
Consequently its loan-to-value ratio grew to 96.4%, past the 75% threshold for breaching debt covenants.
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