Irish entrepreneur Noel Smyth has lost control of his UK property portfolio after failing to restructure or repay around £180m of outstanding debt.
Savills Commercial is to be appointed fixed charge receiver to 40 UK properties owned by Alburn Real Estate, while administrators will be appointed to subsidiaries which hold properties in Scotland.
A notice released to the Stock Exchange today said: “The borrower has indicated its willingness to work with the loan servicer, receivers and administrators in their efforts to maximise recoveries on behalf of the finance parties.”
The move comes after a number of attempts to unwind the defaulted Alburn REC 6 European securitisation.
Smyth has been battling to maintain the assets for more than two years, and attempted to persuade investors in the £184m of securitised debt secured against the portfolio to give him a three-year loan extension.
Advisers to the bond holders and loan servicer Rothschild, Brookland Partners and CBRE have been assessing options for the best way to see as much of the debt paid back as possible.
Options included enforcement of the loan, resulting in an orderly break-up and sale of the assets, The loan has plunged in value since 2007, when it was worth £200m.
bridget.oconnell@estatesgazette.com
