Hatfield Philips Negotiates Sale Of Assets Forming The Collateral Of The Bridge Loan In The Windermere X Securitization
- Net Proceeds from Sale Expected to Fully Cover Outstanding Principal and Interest on Senior Loan -
LONDON, Sept. 28, 2015 /PRNewswire/ -- Hatfield Philips International ("HPI"), which along with LNR Europe (collectively, the "Company") serves as a leading NPL and debt advisory firm with best-in-class loan servicing capabilities, today announced that it negotiated the successful resolution of the Bridge Loan (the "Loan"), which is part of the Windermere X securitization, by way of a highly targeted marketing process.
The portfolio (the "Portfolio") consists of six office buildings aggregating approximately 190,000 square meters and produces €28 million in Gross Rental Income per year. The properties, which are located in key German metropolitan markets, are primarily let to high credit quality tenants. The gross disposal proceeds from the sale of the Portfolio are in excess of €330 million. The pricing achieved is greater than the latest public valuation, and net proceeds are expected to fully repay the amount of principal and interest outstanding on the Senior Loan and partially repay the amount outstanding on the Junior Loan.
"We are very pleased to have achieved this positive outcome for noteholders and to have exceeded initial market expectations as it relates to this portfolio," said Blair Lewis, Chief Executive Officer of HPI/LNR Europe. "Working with a dedicated and interest-aligned asset manager and two highly regarded brokers allowed us to target the most logical buyers; and the comprehensive dataroom we established enabled those targets to make quick, informed investment decisions. This highly structured and competitive process reflects our proficiency in facilitating large portfolio trades in the German market."
HPI was appointed special servicer on the Loan after the Borrowing entities failed to repay it in full on its 15 January 2014 maturity date. Shortly thereafter, HPI took control of the Borrowing entities through enforcement on Luxembourg share pledges and appointed a new asset manager in Valad to enhance the value of the Portfolio. After engaging in regular dialogue with Valad, the Borrowing entities, Controlling Class Representative and noteholders, HPI and all parties agreed a highly targeted sales process was the most appropriate resolution strategy. This decision led to NAI Apollo and PricewaterhouseCoopers being appointed to strategically market the Portfolio to potential buyers. To maximize proceeds, the sale of the Portfolio was split into two transactions with five assets being acquired by affiliates of a global private equity fund in a share deal and one asset being acquired in a direct asset deal by Publity AG.
Paul Hastings acted as the legal and Arcadis as the technical advisor on the sell side of the transaction.
The sale of the Portfolio marks the third large German portfolio HPI has managed to sell in excess of €250 million over the last 24 months. HPI previously announced the successful sales of the Margaux portfolio and Treveria Silo E portfolio in December 2013 and 2014, respectively. With these transactions, HPI has established itself as a leader in facilitating large German portfolio trades.
About Hatfield Philips International Ltd.
Hatfield Philips International ("HPI"), together with LNR Europe, is a leading NPL and debt advisory firm with best-in-class loan servicing capabilities. From NPL underwriting to co-investing to helping lenders execute on debt strategies, HPI is uniquely positioned to deliver multiple layers of value to a wide range of debt market participants. HPI accomplishes this by leveraging a highly seasoned team of real estate finance, workout, debt servicing, and client service specialists. Founded in 1997 on the principles of trust, integrity and providing the highest levels of customer service, HPI has the experience and capabilities to partner with clients to achieve their business and investment objectives. HPI is a subsidiary of LNR Property, a United States-based real estate investment, finance, management and development firm, which was acquired by Starwood Property Trust in April 2013. For more information please visit us at http://www.hatfieldphilips.com/.
Investor Relations:
Zachary Tanenbaum
Starwood Property Trust
Phone: +1-203-422-7788
ztanenbaum@starwood.com
Media Relations:
Jason Chudoba
ICR, Inc.
Phone: +1-646-277-1249
Jason.Chudoba@icrinc.com
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