A shopping mall owned by entrepreneur Simon Halabi has been put into LPA receivership.
Loan servicing company Capita IRG Trustees told the Stock Exchange this afternoon that a decision had been taken to accelerate a £46m loan secured by the
It said that Capmark, which is administering the loan, had done this because the owner had refused to put up extra cash required to cover rent shortfalls and pay for the management of the centre.
“The managing agent has requested that the property owners make up the shortfall in respect of service proceeds in the sum of £330,673.21 currently outstanding and an additional sum of £150,637.94 will shortly be due,” said Capita. “None of the property owners, the borrower or the shareholder have made up this shortfall, constituting an event of default that remains outstanding.”
It added: “[Capmark] has written to the borrower, the property owners and the shareholder notifying them of these events of default and the property owners and the shareholder have indicated to the special servicer that they do not intend to make further equity contributions to cover these outstanding amounts. On this basis the managing agent has threatened to resign as it does not believe it can properly carry out its duties in relation to the property.”
The loan was provided by Merrill Lynch, and later parcelled on and sold to bond investors as part of a commercial mortgage backed security issuance.
