£172m AMG Portfolio goes into administration

£172m AMG Portfolio goes into administration


The ill-fated AMG Portfolio Loan, part of the Windermere VIII CMBS plc securitisation, which matured earlier this year has been taken into administration.

The AMG portfolio includes five City of London properties, including 52-56 Leadenhall St, 49 Leadenhall, 109-114 Fenchurch St, 100 Fenchurch St and 9-13 Fenchurch St.

Four of the buildings make up the Leadenhall Triangle site, rumoured to become the new global headquarters for Deutsche Bank. It was also speculated that JP Morgan would become a potential occupier.  

All plans have now been halted however, following confirmation on Tuesday that PricewaterhouseCoopers have been appointed administrators.

With £171,809,619.80 of the loan currently outstanding, a £330,801,049 loan was originally issued by the primary and special servicer Hatfield Philips in April 2006.

One of Europe’s largest loan servicers, Hatfield Philips said it had failed to find a ‘consensual way forward with the borrowers’ since the loan reached maturity on April 15 of this year, and announced it had filed for administration with Mark Betten and Stephen le Page of PwC.

Philip Byun, vice president of Hatfield Philips, said:  “The decision to file for administration was not taken lightly. After several months of negotiation, a consensual way forward could not be achieved.

“Our goal is to maximise the recoveries for all lenders and in cooperation with our advisor Cooke & Powell LLP and joint administrator Mark Batten and Stephen le Page of PricewaterhouseCoopers CI LLP.

“We will now be implementing our strategy which will include driving substantial business plans for the five buildings and exploring the prevailing strong interest in these assets with third parties.”

According to trade publication Property Week, some of the leases on the City buildings have been altered and vacant possession may not be available until as late as 2015.

The journal pointed to the recent surge in City developments,

including Land Securities’ Walkie Talkie on Fenchurch Street and British Land’s Cheese Grater on Leadenhall Street

, and suggested any development on the Leadenhall Triangle site would likely be after the completion of these skyscrapers and therefore not before 2014-2015.

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