A portfolio of 18 offices across the UK has been put into receivership following a steep decline in property values.
A portfolio of 18 offices across the UK has been put into receivership following a steep decline in property values.
The portfolio, which is owned by Fortress' property investment group Mapeley, has seen its value drop from £244 mln (EUR 313 mln) six years ago to as little as £75 mln at end-January this year, largely as a result of growing vacancies.
Hatfield Philips, the special servicer which manages £170 mln of debt secured against the properties, appointed receivers to the portfolio on July 5 after Mapeley declined to inject fresh equity into the defaulted DECO 6 CMBS loan. The securitised facility was issued by Deutsche Bank in December 2005.
The largest asset in the portfolio is the vacant 23,200-m2 Delta Point office in Croydon.
Mapeley, a major property investment and outsourcing specialist in the UK, was taken private by Fortress Investment Group in 2009.
