Mapeley Portfolio receivership

JLL appointed LPA receiver on Mapeley portfolio: full property list revealed

Posted on July 18, 2012 1:22 pmby James Wallace

Hatfield Philips has appointed Jones Lang LaSalle as LPA receiver over Mapeley’s 18-strong UK secondary property portfolio, after the Guernsey-based property company declined to inject fresh equity to cure the severely underwater CMBS loan.

Robert Baldwin and Jemma McAndrew of JLL were appointed by Hatfield Philips, the special servicer on the defaulted DECO 6 – UK Large Loan 2 CMBS loan, on 6 July, while Cordatus Real Estate has been appointed as asset manager on the Mapeley portfolio with a brief to improve value ahead of disposals.

There are a further two properties in Scotland, for which a separate receiver is to be appointed.

CoStar News was first to report the dramatic fall in the portfolio’s value, relative to the outstanding debt, on the first day of MIPIM.

The entire list of all properties is listed below with original purchase price and updated valuation.

The controversy over the portfolio’s value stems from a hugely contested set of vacant possession valuations carried out by CBRE and Knight Frank over 2004 and 2005 when Mapeley piecemeal acquired the portfolio, in the last cycle when prices were rising and debt was cheap.

The aggregate individual property valuations by CBRE and Knight Frank amounted to £244.82m, with a vacant property value (VPV) of £169.82m – contrasting sharply with an updated valuation of £74.74m, as at 31 January this year.

The valuation drop of £170.08m puts the current LTV – against the £170.91m in outstanding debt – at an eye-watering 228.7%.

Hatfield Philips was informed by Mapeley, majority-owned by Fortress Investment Group, that the property company would not be injecting new equity into the loan and subsequently accelerated the loan on 5 July, immediately preceding Baldwin and McAndrew’s appointment as receivers.

The 20-strong, 1.33m sq ft predominantly office portfolio is spread across regional towns and cities throughout England, Scotland and Wales, comprised of 12 individually-acquired properties and the eight-strong Mermaid portfolio.

Below is the entire 20-strong Mapeley portfolio which is now coming to market together with the original 2004/2006 valuation – which exactly correlates to price paid by Mapeley – and the January 2012 updated valuation:

• The 252,468 sq ft Delta Point in Croydon – was valued at £58.6m, now worth £10.18m
• The 130,925 sq ft Chesser House in Edinburgh – was valued at £28.45m, now worth £6.4m
• The 105,809 sq ft Hercules House in London – was valued at £24.35m, now worth £12.37m
• The 71,626 sq ft Kings House in Reading – was valued at 17.22m, now worth £7.5m
• The 108,178 sq ft Touthill Close in Peterborough – was valued at £14.0m, now worth £1.6m
• The 68,441 sq ft Henry Cotton Building in Liverpool – was valued at £12.77m, now worth £3.8m
• The 64,745 sq ft Tmobile Call Centre in Merthyr – was valued at £11.2m, now worth £2.66m
• The 57,513 sq ft Aspect Court in Sheffield – was valued at £9.5m, now worth £3.82m
• The 69,904 sq ft Aragon Court in Peterbrough – was valued at £9.43m, now worth £2.9m
• The 57,269 sq ft Riverside House in Northampton – was valued at £7.8m, now worth £2.3m
• The 30,558 sq ft Rivers House in Chelmsford – was valued at £7.375m, now worth £2.82m
• The 34,143 sq ft 89 Sandyford House in Newcastle upon Tyne – was valued at £6.95m, now worth £3.825m
• The 50,740 sq ft Essex House in Southend – was valued at £6.31m, now worth £2.66m
• The 56,494 sq ft City Exchange in Bradford – was valued at £5,37mm, now worth £1.165m
• The 32,271 sq ft Bradford Beaumont House & Villa in Northampton – was valued at £5.175m, now worth £500,000
• The 36,743 sq ft Courtwood House in Sheffield – was valued at £5.0m, now worth £710,000
• The 42,835 sq ft Ley Street House in Ilford – was valued at £4.61m, now worth £2.43m
• The 26,440 sq ft Cefn Coed in Cardiff – was valued at £4.55m, now worth £2.74m
• The 13,403 sq ft Queens House in St Albans – was valued at £3.125m, now worth £3.03m
• The 16,551 sq ft Artillery House in Droitwich – was valued at £3.04m, now worth £1.325m