Gibraltar-based consortium Roundwood Developments’ £82.1m loan securing the 196,000 sq ft Mitre House at 160 Aldersgate Street, EC1, matures on 18 July.
The property is fully let to law firm CMS Cameron McKenna, which has enlisted Mark Glatman’s Abstract Securities as an adviser to find it a new 200,000 sq ft HQ after pulling out of a prelet with Hammerson. The law firm’s lease expires in July 2015.
According to ratings agency Fitch, the most recent valuation of the property from July 2010 stands at £78m, reflecting a 32% decline in market value since the CMBS closed in September 2005.
This gives the senior loan a loan to value of 105%, and the whole loan an LTV of 137%.
Fitch has warned that the loan is one of five due to mature this month that have a short tail period – just two years between loan maturity and the maturity of the bonds – giving the special servicers a limited time to “improve the exit position of the loan”.
The €2.5bn of debt falling due this month has been inflated by €1.5bn because a total of 13 loans have been extended over the past year.
Fitch said that the trend to extend loan maturity dates “threatens to make the gradient of the refinancing wall even steeper in the run up to bond maturities” in a market where debt is becoming ever more scarce.
• An earlier version of this story said that Igal Ahouvi was an investor Roundwood Developments. Although he was previously an investor in the consortium he no longer holds any interest in the vehicle or the asset.
bridget.o’connell@estatesgazette.com
