Segro and LIM pick up distressed Gemini CMBS assets

Two properties in the distressed Gemini CMBS have been sold, one above and one below their allocated loan amount (ALA). Segro paid £30m for a 25,500m2 logistics warehouse in Barking, at a 6.9% initial yield and £5m more than the ALA.

Rob Howe of Valad Europe, which manages 25 of the original 36 assets for receiver Deloitte, said the sale was in line with its plan to maximise recoveries.

LaSalle Investment Management has picked up the 165,000 sq ft Northfields shopping centre in Birmingham for £23m – £18.6m less than the ALA. Northfields was valued at £60.5m in 2006, said CMBS analyst Chalkhill Partners.

The Gemini issuer is suing CBRE and a former King Sturge subsidiary over the valuation of 26 properties in the original CMBS pool. The valuers say the claim is without merit.

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