Hatfield Philips, the independent primary and special servicer, has announced the restructuring of two loans totalling EUR 481 mln that make up part of Titan Europe 2006-2 mortgage-back security. The EUR 273.4 mln Margaux Portfolio Loan is secured on 526,586 m[sup]2[/sup] of predominantly residential properties across Germany; whilst the EUR 208 mln Petrus Portfolio Loan is secured on 346,723 m[sup]2[/sup] of residential properties in Berlin Hellersdorf, Germany.
Hatfield Philips, the independent primary and special servicer, has announced the restructuring of two loans totalling EUR 481 mln that make up part of Titan Europe 2006-2 mortgage-back security. The EUR 273.4 mln Margaux Portfolio Loan is secured on 526,586 m2 of predominantly residential properties across Germany; whilst the EUR 208 mln Petrus Portfolio Loan is secured on 346,723 m2 of residential properties in Berlin Hellersdorf, Germany.
Since the transfer of the two loans to special servicing, Hatfield Philips has negotiated loan restructuring terms with the borrower. The restructuring agreement for the Margaux Portfolio involves extending the final maturity date until 18 July 2012 with the option to extend to 18 January 2013. The extension is conditional on certain conditions being met.
The final maturity date for the Petrus Portfolio Loan is being extended until 18 April 2012 with the option to extend to 18 January 2013, again provided certain conditions are met. The borrower will be required to fund a monthly capital expenditure top-up.
For both loans, a new hedge is being put in place at the borrower's cost. The swap gain in monetary value following breakage of the original swap is over EUR 600,000. All surplus cash after Opex payments will be invested in the properties. A letter of credit has been issued by the borrower which will remain in force until the final extended maturity of the loan. All other pre-restructure covenants and securities remain in full force.
Michelet Romulus, asset manager at Hatfield Philips, commented: 'In the current, very challenging, market we are pleased to announce the successful completion of the restructuring of the loan. As special servicers it is our responsibility to ensure maximum value is obtained for the borrower, and this restructuring illustrates the creative approach that is essential with the current lack of available finance.'