Special servicer Mount Street is set to poach the management of €425m (£351m) of loans from Hatfield Philips.
The firm, which is run by former Morgan Stanley CMBS specialists Ravi Joseph and Paul Lloyd, has won the provisional support of class A noteholders in the Lehman Brothers Windermere XIV securitisation for the move. Current proposals will see it replace its rival Hatfield Philips as primary servicer of the Baywatch, GSI, Fortezza and SISU loans and special servicer of the Baywatch loan.
The controlling class of noteholders are expected to vote through the plans at a meeting on 20 January.
In the past, primary servicers have been replaced on single loans, but this deal is understood to be one of the first times a primary servicer will be voted out on a legacy whole securitisation.
Mount Street will work with staff at its new Frankfurt office to manage the Windermere assets, which are German, Finnish and Italian. It gained the European office through the purchase of rival Crown’s German platform in December.
Mount Street manages around £400m of loans in special servicing. These include the Windermere XIV SISU loan, which Lone Star transferred from Hatfield Philips.
It emerged this week that the business had been picked as the preferred party to take over Morgan Stanley’s Mortgage Servicing European business.
MSMS’s platform, European Loan Conduit, still includes nine CMBS transactions with an outstanding balance of around €3.3bn.
These comprise loans against assets including Beacon Capital Partners’ CityPoint tower and Fordgate’s Fox portfolio.
Mount Street beat competition from CR Investment Management, which is run by managing directors Stephen Benson and Jacob Lyons, formerly of Rothschild.
bridget.o’connell@estatesgazette.com
