EC Harris forms distressed property advisory

Build consultancy EC Harris has teamed up with receiver specialist Jorden Salata to advise lenders and investors on the looming tidal wave of maturities of commercial mortgage backed securities.

EC Harris and Jorden Salata said that about €35 bn of Commercial Mortgage Backed Security (CMBS) loans are scheduled to mature in 2013-14.

The two parties said the strategic alliance will 'help lenders and investors gain the best value from their distressed real estate portfolios'.

Martin Cannon, head of lenders & investors UK at EC Harris said: 'At this point in the cycle many of the straightforward distressed situations will have been dealt with. What will remain are those that may require a more imaginative approach. The technical and commercial expertise of EC Harris allied with the receivership and recovery skills of Jorden Salata represent a powerful proposition for generating best value for our clients.'

The CMBS market reached its peak in 2008-09, prior to the financial crash. CMBS real estate loans were typically written on five-year terms, meaning that a wall of refinancing is due to hit the market over the next two years. In Europe, about €20 bn of CMBS loans is scheduled to mature in 2013 followed by another €15 bn in 2014. If the terms cannot be extended the options for the borrower are to repay, refinance or default.

EC Harris and Jorden Salata will continue to operate as separate entities, but will collaborate jointly on various opportunities.