Hatfield Philips International (HPI), Europe's largest independent Primary and Special Servicer, has launched a change of usage investigation and served a valuer negligence claim relating to Gateshead Metro Centre.
Hatfield Philips International (HPI), Europe's largest independent Primary and Special Servicer, has launched a change of usage investigation and served a valuer negligence claim relating to Gateshead Metro Centre.
The moves come ahead of the workout of the loan transferring to the new servicer, Hudson Advisors, the servicing arm of Lone Star.
The Metro Centre, which was built in the early 2000s and covers 148,000 sq ft, ran into financial difficulties in 2008 when the key tenant, Danish furniture retailer ILVA, went into administration after just over two years of trading in the UK, reportedly losing £2.33 for every £1 taken.
In addition to the valuer negligence claim, Hatfield Philips has also appointed planning specialists to look at including food outlets within the centre and Colliers to identify non-food pre-lets, increasing its attractiveness for the public and thus increasing the site’s value.
Philip Byun, vice-president, Hatfield Philips, said: 'Increasing the attractiveness of any loan is core to the operation of a special servicer, and we are therefore extremely pleased that the Metro Centre has attracted the interest of Lone Star.
'Furthermore, whilst the Metro Centre presented serious challenges from both the perspective of the debt itself and the property and its utilization we are extremely pleased with the likely outcomes.'
