ABS

Eight of Nine Properties from White Tower U.K. CMBS Up for Sale

Published 1 Min Read

CB Richard Ellis Loan Servicing, (CBRELS), the special servicer for the U.K. CMBS White Tower Plc, series 2006-3, announced the sale of eight of the nine properties backing the ₤1.15 billion ($1.74 billion) securitized loan.

This announcement showed that the special servicer is following the business plan outlined in previous statements. A successful sale of the buildings will likely allow full repayment to the most senior of five classes of noteholders, CBRELS said in a statement.

The buildings being marketed include offices at Alban Gate and 60 Victoria Embankment, but exclude Aviva Tower, the last building within the CMBS, the servicer said.

After the end of the loan maturity, the deal doesn’t benefit from any hedge between the operating income and the liability payments. Societe Generale analysts said that current Libor levels have significantly reduced the debt servicing, which has resulted in extra cash. The money is being used to repay the notes on a sequential basis, benefiting the senior Class A noteholders.

White Tower defaulted last July. The special servicer plans to hold a bondholder conference call on March 17.


For reprint and licensing requests for this article, click here.


More From Asset Securitization Report

Why CMBS Investors Are Up in Arms Over Prudential Plaza Loan

The inclusion of a loan secured by Chicago’s Prudential Plaza in a recent CMBS is causing a stir. Some investors are on edge about the property’s recent financing history, which suggest sharply different appraisal values within weeks of each other.

U.K. and Australian RMBS Deals in the Market

Investec is in the market with a U.K. RMBS deal worth ₤186 million ($295.26). Barclays Capital and Investec Bank are managing the eight-tranche transaction called Residential Mortgage Securities 25 (RMS 25). According to a Standard & Poor’s pre-sale report, some of the note tranches in the deal have features that are not quite typical for […]