CMBS
- The special servicer for the Wesser Strasse loan (TITN 2006-3) advised that a sale and purchase agreement has been executed for the property for €50m. €47.9m will be applied to the notes sequentially at the next IPD. The loan (14% of the remaining loan pool) has a current balance €109.7m. The remaining funds have been retained to cover outstanding matters such as costs associated with the sale. Once all outstanding matters have been completed any surplus funds will be applied to the loan.
- The issuer for the EURO 24 transaction has advised the sequential redemption event deemed to have occurred on 20 April 2011 was an error. Because of this error funds totalling £2.98m were incorrectly allocated to class A noteholders. The sequential redemption event actually occurred on each of the July and October IPDs. The calculation and reporting agent has recalculated and made the requisite adjustments. Additionally, the definition of net mortgage in the master definitions and the offering circular differ. This led to an overpayment of £60k to the class X notes. The security trustee has consented to an amendment which has resulted in the class X notes repaying the £60k.
- The portfolio securing the ECLIP 2006-3 (GEMINI) transaction was re-valued as at 30 September 2011. The valuation came in at £469.6m (the portfolio was last valued in September 2008 at £801.42m). The outstanding securitised loan balance is £850.4m (current LTV of 181.1%). The loan remains in default as a result of shortfall in interest payments and breaches of both the ICR and LTV covenants. As advised back in November 2011, CBREL has delayed producing its strategic review after the borrower appointed Lazard’s to advise it on a restructuring proposal. No further update has been provided to noteholders. Additionally, the Guernsey Royal Court ordered the appointment of Joint Administrators to Propinvest Group Limited.
Consumer data
- UK: BRC shop price index yoy decreased to 1.7% in December from 2.0% November.
CMBS
- An updated valuation for the portfolio securing the Randstad loan (EPC 3) was completed on 31 December 2011 by Savills. Savills valued the portfolio at €129.27m, a 16.6% fall from the January 2011 valuation. The securitised loan LTV is 83.6%. The loan remains in default having not repaid at maturity, 16 August 2010. Discussions continue over an orderly sale of the portfolio.
- The standstill agreement for the Ruhr loan (TAURS 2006-1) has been extended to 31 May 2012. It was deemed prudent to extend the standstill period to allow the borrower and special servicer to undertake the disposal strategy. No payments will be made to subordinated debt until the senior loan is repaid in full. The special servicer will provide updates on the loan.
- Reports were issued for DECO 2007-C4, ECLIP 2005-1, ECLIP 2006-4, GRF 2006-1, THEAT 2007-1, and THEAT 2007-2.
Consumer data
- UK: BRC yoy retail sales for December rose 2.2% compared to a fall of 1.6% in November.
- UK: RICS house price balance rose by one point to -16 for December compared with -17 for November.
CMBS
- The issuer for TMAN 7 has released notification advising that sale and purchase agreements have been entered into and notarised for the Marienstrasse 10, Nürnberg and Friedrich-Ebert-Strasse 25, Kassel properties. The sale prices achieved are €2.2m and €550k respectively. Proceeds will be applied when sales completions occur – no date has been specified. These sales are part of the asset disposal strategy employed in the new business plan which envisages all properties backing the loan being sold before the restructured loan maturity in 2015.
- The Falcon Crest loan (WINDM X) repaid in full on 30 December 2011. The loan proceeds, €90.3m, are expected to be applied to the notes (on a 50% sequential and 50% pro rata basis) on 24 January 2012.
- Fitch has downgraded its ratings on TMAN 3 class D as follows:
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Class
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Previous Rating
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New Rating
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D
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CCC
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CC
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- Reports were issued for CENTP 2007-1, ECLIP 2005-3, MALLF 1, SANDW 2 and TAURS 2
Consumer data
- UK: Lloyd’s employment confidence index remained flat at -75 for December.
- GE: Imports declined 0.4% mom in November following a 1% fall in October. Exports rose 2.5% for the same period following a 3.6% mom decline in October. Germany's current account for November was €14.3bn compared to a revised surplus of €10bn in October.
