HATFIELD PHILIPS NEGOTIATES SALE OF ASSETS FORMING THE COLLATERAL OF
THE BRIDGE LOAN IN THE WINDERMERE X SECURITIZATION
- Net Proceeds from Sale Expected to Fully Cover Outstanding Principal and Interest on Senior Loan LONDON (September 28, 2015) – Hatfield Philips International (“HPI”), which along with LNR Europe
(collectively, the “Company”) serves as a leading NPL and debt advisory firm with best-in-class loan servicing
capabilities, today announced that it negotiated the successful resolution of the Bridge Loan (the “Loan”),
which is part of the Windermere X securitization, by way of a highly targeted marketing process.
The portfolio (the “Portfolio”) consists of six office buildings aggregating approximately 190,000 square meters
and produces €28 million in Gross Rental Income per year. The properties, which are located in key German
metropolitan markets, are primarily let to high credit quality tenants. The gross disposal proceeds from the sale
of the Portfolio are in excess of €330 million. The pricing achieved is greater than the latest public valuation,
and net proceeds are expected to fully repay the amount of principal and interest outstanding on the Senior
Loan and partially repay the amount outstanding on the Junior Loan.
“We are very pleased to have achieved this positive outcome for noteholders and to have exceeded initial market
expectations as it relates to this portfolio,” said Blair Lewis, Chief Executive Officer of HPI/LNR Europe.
“Working with a dedicated and interest-aligned asset manager and two highly regarded brokers allowed us to
target the most logical buyers; and the comprehensive dataroom we established enabled those targets to make
quick, informed investment decisions. This highly structured and competitive process reflects our proficiency
in facilitating large portfolio trades in the German market.”
HPI was appointed special servicer on the Loan after the Borrowing entities failed to repay it in full on its 15
January 2014 maturity date. Shortly thereafter, HPI took control of the Borrowing entities through enforcement
on Luxembourg share pledges and appointed a new asset manager in Valad to enhance the value of the
Portfolio. After engaging in regular dialogue with Valad, the Borrowing entities, Controlling Class
Representative and noteholders, HPI and all parties agreed a highly targeted sales process was the most
appropriate resolution strategy. This decision led to NAI Apollo and PricewaterhouseCoopers being appointed
to strategically market the Portfolio to potential buyers. To maximize proceeds, the sale of the Portfolio was
split into two transactions with five assets being acquired by affiliates of a global private equity fund in a share
deal and one asset being acquired in a direct asset deal by Publity AG.
Paul Hastings acted as the legal and Arcadis as the technical advisor on the sell side of the transaction.
The sale of the Portfolio marks the third large German portfolio HPI has managed to sell in excess of €250
million over the last 24 months. HPI previously announced the successful sales of the Margaux portfolio and
Treveria Silo E portfolio in December 2013 and 2014, respectively. With these transactions, HPI has established
itself as a leader in facilitating large German portfolio trades.
About Hatfield Philips International Ltd.
Hatfield Philips International (“HPI”), together with LNR Europe, is a leading NPL and debt advisory firm
with best-in-class loan servicing capabilities. From NPL underwriting to co-investing to helping lenders execute
on debt strategies, HPI is uniquely positioned to deliver multiple layers of value to a wide range of debt market
participants. HPI accomplishes this by leveraging a highly seasoned team of real estate finance, workout, debt
servicing, and client service specialists. Founded in 1997 on the principles of trust, integrity and providing the
highest levels of customer service, HPI has the experience and capabilities to partner with clients to achieve
their business and investment objectives. HPI is a subsidiary of LNR Property, a United States-based real estate
investment, finance, management and development firm, which was acquired by Starwood Property Trust in
April 2013. For more information please visit us at http://www.hatfieldphilips.com/.
Investor Relations:
Zachary Tanenbaum
Starwood Property Trust
Phone: +1-203-422-7788
ztanenbaum@starwood.com
Media Relations:
Jason Chudoba
ICR, Inc.
Phone: +1-646-277-1249
Jason.Chudoba@icrinc.com