The workout of Real Estate Opportunities’ €460m distressed debt pile has stepped up a gear following the appointment of advisers.
Eurohypo, which is the servicer of a loan to the Irish property company REO, has appointed debt specialists Cairn Capital and law firm Sidley Austin ahead of the loan’s maturity in February next year.
The loan is split into a €375m senior loan that was parcelled up and sold to bondholders, and an €85m junior loan now held by NAMA, the Irish body set up to manage distressed property loans.
Eurohypo’s servicing team manages the loan on behalf of investors in the securitised debt, and will now work on agreeing a proposal with bondholders before a debt restructuring can be agreed.
REO is a Channel Islands-listed property company set up by Treasury Holdings.
The portfolio was last valued at €292m, down from €570m at the peak of the market, giving it a loan to value of at least 128%, even if the €85m junior loan is not taken into account.
bridget.oconnell@estatesgazette.com
