Debt deleveraging by the lenders is only at the start of what will be a lengthy process. Nevertheless since successfully structuring the UK’s first "loan to own" transaction in August 2009, Ellandi has purchased more single loans than any other UK focused investment manager.
The strategy is usually to use the debt instrument to achieve ownership of the underlying real estate. This can be characterised as aggressive and detrimental to the borrower; however in every instance, bar one, we have successfully restructured the loan which has led to payments to the borrower, even where there is, on the face of it, no value to their equity.
We have known Ellandi since their formation and have both looked at projects together and sat opposite them as counterparties.
In every case they have brought a focused and honest approach to business and we look forward to continuing to build our business relationship with them.
Angus Dodd, Managing Director, Lone Star
Our focus to date, has been on loans secured against retail assets, however going forward we will be targeting other asset classes where we feel the team can add value, or we are happy to bring in specialist asset managers, as appropriate.