Special servicing case studyMapeley II Loan: Mapeley ‘Beta’
Loan to value turnaround in less than three years for Mapeley Beta
- Mapeley Beta portfolio comprising 16 office schemes around the UK at 1.18m ft² with 27 tenants.
- Largest occupier, Microsoft, occupies 246,000 ft² at Thames Valley Business Park, Reading.
- Mapeley II starting loan to value ratio of the original loan: 75 per cent.
- Original loan: £280m.
- Valuation: £278m.
- August 2012 valuation: £134.3m breaching its 90 per cent LTV trigger and representing a LTV of 141 per cent.
- No asset and property management strategy.
- Spiralling rent and service charges and longstanding arrears.
- Unsettled tenants.
- Urgent issues affecting cash flow dealt with as a priority stabilising the situation.
- Rigorous appraisal of each asset to create a viable asset and property management strategy.
- Consultation with tenants to secure them.
- Investment in capital expenditure work to modernise and improve properties towards letting voids.
- Invigorated marketing campaign.
- In early 2015, valuation: £191.4m and for a complete portfolio sale: £200m.
- LTV: 94 per cent.