In 2018 Breevast owned the so called Mesdag Delta Portfolio, consisting of 57 mixed assets. The Portfolio was originally backed by NIBC in 2007. NIBC unsuccessfully tried to CMBS the loan, as a consequence the notes where widely spread over the market. The loan expired after 10 years and a special servicer (Situs) was put on the portfolio. At expiration the LTV was above 100% . Total loan amount was approx. EUR 615 million. After acquiring the B-Note one party got control of the full loan – immediately forcing Breevast to repay the full loan within a very limited timeframe. The aim of this party was to force an execution sale in order to collect the potential margin between LTV and the Execution Price. Breevast approached BNPP RE with the case.
BNPP RE conducted a business plan per asset and set up a full Vendor DD in cooperation with Breevast. Aim of the business plan was to show the upside potential of the Portfolio within the next 2-3 years. After having several negotiations Breevast and HighBrook Investors came to an agreement whereby HighBrook Investors paid the full loan amount of EUR 615 million to the Loan holder. Breevast was installed on the Portfolio as an Asset- & Property Manager. BNPP RE in the meanwhile sold the industrial assets for 138 million to Urban Industrial.
The whole process of conducting a business plan per asset, set up a Vendor DD, negotiate an agreement between Breevast and HighBrook Investors and re-selling the industrial portfolio took BNPP RE 8 weeks.
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