CR Investment Management has sold a further 10 German properties, formerly owned by a Morgan Stanley Real Estate Funds (MSREF) vehicle, for about €55 mln.

CR Investment Management has sold a further 10 German properties, formerly owned by a Morgan Stanley Real Estate Funds (MSREF) vehicle, for about €55 mln.

The assets were part of the Sanchez portfolio, which originally consisted of 107 properties. The full portfolio was supported by €1.1 bn in loans and was originally owned by a Morgan Stanley Real Estate Fund vehicle, which, CR said, effectively 'handed back the keys' in June 2011. Pan-European financial adviser CR was then appointed as asset manager and transaction adviser by the lenders to dispose of the assets.

The latest sales of 10 properties, totalling 65,000 m2 of lettable space across Germany, occurred between June and September 2014.

Jenniffer Solomon of CR commented: 'The recent transactions further underline CR’s success in driving sales from the Sanchez portfolio regardless of the diversity, quality and location of the assets. We have demonstrated that with a pro-active approach and use of our pan-German infrastructure – with five offices across Germany - investor interest can be stimulated across the board, with the effect being that CR is able to identify the right buyer for each asset.'

FINANCE STRUCTURE
The original 107-asset portfolio was financed through loans totalling €1.1 bn which consisted of a €472 mln securitised loan (the Mozart Loan within the Talisman 7 securitisation), an equivalent pari-passu senior loan which was not securitised, and junior debt.

CR said it drew on the breadth and depth of its network, from local developers to large international investors, to sell the properties, 'many of which are located in non-prime locations and had a number of technical complexities associated with them such as fire protection issues, 100% vacancy and part-ownership structures'.

Since mid-2011 CR has reduced the portfolio to less than 20 properties, achieving sales proceeds with an average of 10% above market value.

Founded in 2004, CR has managed and restructured more than €30 bn of real estate and shipping assets and credit and has advised on over €8 bn of loans in the past year alone. CR operates from 10 offices in six countries: the UK, Germany, Ireland, the Netherlands, France and Spain.