German bank funds Catalyst’s distressed Paris CMBS buy

Deutsche Pfandbriefbank has part financed one of France’s first distressed bank sales. It lent almost €88m for Catalyst Capital to buy Front de Parc in northern Paris out of the recently unwound Barclays Juno Eclipse 2007-2 securitisation. The loan includes a refinancing tranche, two capital expenditure tranches and a VAT line. Catalyst also injected equity to refurbish the office complex.

Original owner Cambridge Place defaulted on its €112m of debt in 2008, following the loss of the property’s main tenant. The asset was valued at €69m in July 2009, but Catalyst is thought to have paid up to €90m. This will result in around a €25m loss for note holders in the €6m class E tranche and some in the €41m class D tranche. Cambridge Place this month sold Paris property Paryseine to a private French Investor.