EUROPE - Valad Property Group has had a €480m Swedish investment management mandate terminated after it was revealed that Kefren Properties IX would enter into administration.

Valad Europe, the European funds business of the Australia-based company, was appointed by Kefren's lenders to take over the investment management of its real estate portfolio last year. But those same lenders have now applied for Kefren's bankruptcy.

The mandate agreement with Valad was subject to certain termination rights, one of which has been triggered by the failure to obtain refinancing.

The notice of termination follows the announcement by Kefren Properties IX to the OMX Nordic Exchange that: "Despite almost two years of intensive negotiations regarding reconstruction of the debt structure of the company, we have today received an Acceleration and Demand Notice regarding the senior debt and a notice that the senior banks will file for bankruptcy.

"We will immediately contact the special servicer who has an obligation to call for a bondholder meeting in the case of the bankruptcy of the issuer."

Valad is negotiating with the banks' agent on the terms of the termination and with a view to exploring a range of strategic alternatives.

The news coincides with the revelation that Peter Hurley, the managing director who failed in a management buyout (MBO) of Valad's European funds business, has left the company.

Hurley and European chief executive Martyn McCarthy led a proposed MBO  last year, and the former agreed to take a leave of absence from his role.

Valad said it paid Hurley AUD1.9m (€1.4m), including an agreed termination payment of AUD940,000, on his departure.