A loan secured against Hayes Business Park near Heathrow is among a record 23 European CMBS loans with a balance of more than €1.7bn (£1.4bn) set to mature this month.
The £56.6m loan was originated by Morgan Stanley in 2006 as part of the £494m Radamantis European Loan Conduit No 24 vehicle.
Loan servicer Morgan Stanley Mortgage Servicing is in discussions with the borrowers – a consortium of private Bahraini investors known as Dominion Asset Management – about an exit strategy. Morgan Stanley is also the agent on a £16m junior loan to the group that is set to expire as well.
It is understood the consortium is in talks with banks about a possible refinancing.
According to rating agency Fitch, the Middlesex office park, which is home to tenants including Fujitsu and Heinz, has an estimated valuation of around £63m, giving the entire debt package a loan-to-value ratio of 114%.
Also set to mature this month is a £33.3m securitised loan issued against a 65,000 sq ft city office building occupied by Standard Chartered Bank at 1 Aldermanbury Square, EC2. The loan, which is part of the Cornerstone Titan 2006-1 vehicle, was transferred to special servicing last September, after a breach of its LTV covenant.
Borrower EPIC UK private investors Michael and Steven Elghanayan’s said it was in the process of refinancing the asset, which will result in the bondholders being paid back in full.
It is understood the building, which is let to the bank for four more years, was valued at around £37m in December.
According to Fitch, the 23 European securitised loans that mature this month is the largest number seen in one month since the origination boom in 2006 and 2007. Around 50% of the underlying properties are in Germany with just 12% in the UK.
According to Fitch, there is €12.2bn of Fitch-rated European CMBS loans maturing this year, followed by €14.8bn next year and €21.5bn in 2013.
Delancey is expected to re-vote on plans for a sale of securitised City landmark Plantation Place before the end of the month.
Jamie Ritblat’s company is understood to be the class B noteholder that last month blocked by 1% a bondholder vote for an “orderly sale” of the EC3 office after buying into the debt secured against it.
The sale was proposed as part of a restructuring of the building, which has breached a number of covenants on its £448.6m debt since losing nearly a quarter of its value during the property downturn.
