New European loan servicing business Mount Street has confirmed its acquisition of Morgan Stanley Mortgage Servicing.
The merger will more than double Mount Street’s commercial loan book to around £8bn and its headcount in Germany.
MSMS was founded in 1998 as part of the bank’s European CMBS platform and acts as primary, special and master servicer across Morgan Stanley’s ELOC securitisation programme, and on selected agency and third-party transactions.
The MSMS team is located in London and Frankfurt, and provides servicing on loans in the UK, France, Germany, Italy, Netherlands, Belgium and Switzerland.
MSMS services commercial mortgage loans and CMBS, makes collections and monitors the underlying property collateral.
The firm has loan servicing mandates amounting to a total of £4.5bn.
Mount Street was founded in 2013 by chief executive Ravi Joseph and managing partners Paul Lloyd and Bill Sexton and has offices in Frankfurt and London.
Joseph said: “We are delighted to have completed the acquisition of Morgan Stanley Mortgage Servicing – a business that has a great track record and reputation, and gives us a much larger platform in the CMBS space.
“Servicing is a very important part of what drives the performance and return on these loans, and Mount Street’s core objective is to bring a higher standard of professionalism and client service to this sector.”
In the past nine months the firm has won more than £3.5bn of new business, including the servicing of new loans, servicing of impaired loans acquired by secondary loan buyers, and special servicing and workout of legacy loans in older CMBS deals.
In addition, at the end of 2013, Mount Street took over part of the German CRE loan servicing business of Crown, the loan servicing business owned by private equity firm Forum Partners.
Joseph and Lloyd have a long previous history with both Morgan Stanley and MSMS, having run the bank’s European securitisation, CRE lending and CRE loan servicing from 1998-2004.
bridget.oconnell@estatesgazette.com
