Loan to own’ gets Nailsea centre
Posted by Property Week on 11th Sep 2009
DevSecs and Ellandi bought a £10m senior loan secured on the shopping centre last month.
It is a performing loan and Stockland is meeting the interest payments in full. It is thought that DevSecs and Ellandi are now in talks to buy the Stockland-owned vehicle that owns the centre.
DevSecs and Ellandi bought the loan after its loan-to-value covenant was breached.
The purchase could be the first ‘loan-to-own’ deal, in which an investor buys a loan to enforce covenant breaches and take hold of the asset. However, this has not been confirmed by either party.
DevSecs funded the purchase with proceeds from an equity fundraising it completed in July.
Ellandi is a property and property debt investor run by former Deutsche UK Real Estate head Morgan Garfield and ex-managing director of Oracle Estates Mark Robinson.
Stockland said it planned to exit the UK over the next two to three years as market conditions ‘remain difficult’.
Source: Property Week