The loan on prime London property Devonshire House is at risk of payment default unless rental income improves, Fitch Ratings has warned. The loan on the building, owned by US investors Witkoff Group and Madison International, is part of the Windermere XI CMBS.
Lease expiries and vacant space mean that the net rental income is not servicing the debt payments, which are being met by drawings on the interest reserve account. Sixteen properties backing another Windermere XI loan, Westville, are being sold. Fitch said the prices achieved for eight, at less than the allocated loan amounts, meant the class D notes would be wiped out and the class Cs faced partial writedown.