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 secured against UK shopping centres than any other 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 now successfully transacted opposite major industry leaders including Lone Star, Blackstone, Morgan Stanley, Co-Op Bank and Westbrook Partners.
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
Given the recent spate of large loan portfolio transactions and the amount of deleveraging still to occur, we are confident that this unique track record will enable us to continue to secure off market opportunities for our investors.