An updated valuation of Glenn Maud’s Gemini portfolio has come in at 61% less than its £1.2bn peak value.
The 34 assets owned by Propinvest, which have £950m of securitised debt secured against them, were given a value of just £470m by GVA in September last year, according to the loan’s special servicer, CBRE.
A sale of the secondary properties at this price would recoup only around £250m for investors in the securitised debt when the £229m cost of breaking the loan’s interest-rate swap is taken into account.
There are no current plans to sell the portfolio, and CBRE Loan Servicing has mandated GVA to provide further valuations every six months. The next valuation will be on 31 March 2012.
Propinvest is working on a restructuring proposal that could include an offer to buy the loan back at a discount to its face value. It has drafted in Lazard to advise.
