The Loan and Corporate Recovery (LCR) Team understands that a consensual workout between the lender and the borrower is usually the preferred route but in the unfortunate situation where there is no other option than to enforce CBRE are well place to take on the appointment.
The misconception that by placing an asset into Receivership the value is adversely affected is not always the case; there are a number of benefits to both the borrower and the lender by placing the asset into Receivership:
Ability to insure and secure the Property
Greater control of the income
Business rates savings
Visibility of property management, ensuring all charges and costs for the property are paid e.g. Ground Rent and service charge
Incentivise asset management
Potential long-term hold capability
Greater control of capital fund and Cap-ex accounts
Where there is a consensual restructuring agreement between Bank and Borrower, the LCR Team can carry out a performance testing and monitoring role based on the agreed revised business plan.
The LCR Team have had an extremely busy 2012 taking appointment of a variety of assets including high end residential property, Central London office buildings, a nursing home portfolio, a large industrial unit and an out of town shopping centre. The LCR Team work closely with lenders and borrowers to ensure the best course of action is undertaken be it a medium to long term hold and active asset management or a sale through an auction house, ensuring at all times that the interest of the borrower is maintained and any loses to the lender are minimised.
Resource & Expertise
Our multi-disciplinary team provides a flexible and responsive service to meet the needs of lenders and borrowers by drawing upon CBRE’s resources, extensive sector coverage and market intelligence.
Click here to see our sector specialisms across the CBRE network
The LCR team can undertake a bespoke independent business plan review to support lenders, borrowers, asset managers and potential investors in maximising recovery proceeds.
Review of property/portfolio security and underlying value
Assessment of borrower’s business plan
Recommended CBRE asset strategy focusing on recovery proceeds and timing
Bespoke financial modelling including cash-flow forecasts at asset and debt level
The LCR Team, working alongside Real Estate Finance and Valuation Advisory departments, are able draw upon the resources and specialisms in each team to provide expert advice on distressed loan scenarios and the options available to the lender to minimise any potential loss.
The LCR Team are well placed to draw upon the resources of not just CBRE’s global network but also the expert knowledge of regional agents located close to the asset in question to ensure that the strategic advise provided on potential asset management required is the best it can be.
The LCR Team are able to call upon the expertise found in any of the 13 offices located across the UK and Ireland.
Law of Property Act (1925) & Fixed Charge Receivership
In loan security enforcement situations, the LCR Team is actively engaged in assisting lenders with managing their non-performing loans secured against real estate assets. Where it becomes clear that enforcement action may be necessary our RICS Registered Property Receivers and Fellows of the Association of the Property and Fixed Charge Receivers are suitably qualified and experienced to accept Law of Property Act (1925) (LPA) and Fixed Charge Receivership appointments.
Our team has the experience to implement the most appropriate management strategy for each property, whether it is to hold and manage, undertake and complete any required or outstanding works or market the asset for disposal.
The LCR Team looks to adopt a standardised appointment process when appointed to ensure the best possible service is provided at all times.
Where LPA or Fixed Charge Receivership is the most appropriate option, the Receivers take control of the property and work with both internal and external property professionals to implement the most efficient strategy for the realisation of the client’s security.
The team also work extensively with, and alongside, Insolvency Practitioners, where the bank has decided to enforce its security via the administration route.
Please contact the London-based Loan and Corporate Recovery team directly to discuss how they can help you review your property loan security.