Hatfield Philips accelerates EUR 156m loan on Berlin mall

Hatfield Philips is demanding repayment in full of the loan backed by the Quartier 206 shopping centre in Berlin after the borrower defaulted on the debt and interest payments due in October.

The facility, which was securitised by Credit Suisse as part of the Titan Europe 2006-5 CMBS facility, currently amounts to a total of EUR 156 mln against a value of the mall per January 2011 of EUR 87 mln. The 35,000-m² mall on Friedrichstadt-Passagen was worth over EUR 180 mln in 2006.

The borrower, which first failed to meet payments in April 2010, had offered EUR 90 mln in June last year to settle the situation with the lender, but the acquisition proposal was refused, and as a result the asset went into public administration, and is likely to be put on the market shortly.

Last month, Hatfield Philips announced the sale of a large chunk of the properties securitised in another loan of the German CMBS. The special servicer offloaded all of the Diva multifamily portfolio assets for EUR 205 mln. Closing is anticipated in early 2012 after all terms and conditions of the closing provisions have been fulfilled.

Credit Suisse launched Titan Europe 2006-5, a EUR 661 mln securitisation of predominantly German and some Spanish commercial loans, in 2006. The deal refinanced eight loans secured on a portfolio of 48 properties located in Germany (93.6%) and Spain (6.1%). The pool was split between multifamily (30.5%), hotel (15%), mixed use (15%), retail (13.4%), warehouse (3%) and office (1.9%) properties.