White Tower deal “groundbreaking” claims lawyer

Global private equity firm Carlyle’s acquisition of part of the portfolio securing the White Tower 2006-3 CMBS earlier this month was “ground breaking in an insolvency context” claims Berwin Leighton Paisner real estate partner John Kelsey. “The White Tower transaction is one of the most significant of its kind, both in terms of the scale of the securitised loans that have gone into default and the enforcement process ensuring that bondholders received a good return. “The fact that the some of the White Tower portfolio was capable of being sold by selling unit trusts has been ground breaking in an insolvency context. “This helped to increase the return for bondholders. This complex case is particularly noteworthy because the unit trusts involved two jurisdictions, those of Jersey and Guernsey, and has set a precedent for other deals. “It also highlights that with the right preparation it is possible to maximise the recovery for bondholders in these distressed situations. With the current climate, further deals of this nature are likely in the near future,” he said. Carlyle has acquired six landmark central London properties, comprising the Thames Portfolio and Alban Gate, comprising more than 1.6m sq ft and generating rent of more than £62m pa. They have been bought for a total of £671m. The six properties are: 60 Victoria Embankment; Ludgate House; Sampson House; Millenium Bridge House; BSI tower; and Alban Gate.