philips ppt 2015

Hatfield Philips International

Windermere VII Investor Call

9 April 2015

Hatfield Philips International

25 Canada Square – 34th FloorLondon E14 5LB

This report has been compiled by Hatfield Philips International Limited ("Hatfield Philips") in its capacity as Special Servicer of the loans which are discussed in this report. Hatfield Philips makes no representation as to the reliability of the information provided to it by third parties in order to compile this report.

Information in this presentation should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments. This presentation may contain forward looking statements. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Hatfield Philips’s control.

Neither the whole nor any part of this report may be reproduced in any published document, circular or statement, nor is it to be relied upon by any party, without the prior written permission of Hatfield Philips. Hatfield Philips disclaims any duty, responsibility or liability of any nature whatsoever to any party in respect of this report other than to its contractual partners.

Disclaimer

Current Balance (EUR) # Property Transfer

Date Workout StrategyLoan Whole Loan A-Note B-Note(s) Properties Location Type MaturityLoan

Status

Adductor 48,753,617 48,753,617 - 13 France Office Jul-2012 In Special Jul-2012 On-going Discussions

Corpus

Darmstadt

Firefly

Hanseatic

Mülheim 19,163,815 19,163,815 - 1 Germany Office Jan-2011 In Special Apr-2011 Re-let and Sell

Nitsba

Nordostpark

55,858,916 42,572,008 13,286,908 1 Germany Office Oct-2012 In Special Nov-2011 Re-let and Sell

Phoenix

RedLeaf I

RedLeaf II

Tomet

Total 123,776,348 110,489,44013,286,90

8 15

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WINDERMERE VII DEAL SUMMARY

Asset ProfileAsset Profile

ValueValue

Valuation

Loan (EUR) Date Current LTV Occupancy WALLAdductor 71,239,000 Jun-2012 68.4% 75.7% 1.6 yearsMülheim 8,700,000 May-2013 220.0% 100.0% 0.3 yearsNordostpark 43,400,000 Apr-2012 128.7% 45.0% 7.3 yearsTotal 123,339,000 100.4%

4

Adductor

Loan StatusLoan Status Performance / Credit EventsPerformance / Credit EventsWorkout HistoryWorkout History

Asset Stats*Asset Stats*

StrategyStrategy

UPB at Origination EUR 59,000,000

Current UPB EUR 48,753,617

Initial Whole Loan LTV 79.6%

Current Whole Loan LTV 68.4%

Special Servicing Transfer Date

13-Jul-2012

Estimated Final Resolution Date

31-Aug-2015

Lettable area 47,716 sqm

No. of assets 13

Asset type Office

Valuation/Date

EUR 71,239,000 / Jun-2012

Location France

NRI 4,253,373

ERV 6,913,573

Vacancy 24.3%

WALL 1.6 years

■ The Special Servicer served notice to the borrower on 29-Mar-14 to fully repay the loan.

■ The Special Servicer initiated the process of seizing the rental income of the top ten tenants (ca. 40% of EUR 5.5m) during Q4 2014 with the ultimate aim of seizing control over the secured properties. This process is on-going.

■ The borrower entities are owned by a French holding company under a restructuring procedure (“Redressement Judiciaire”) which had a restructuring plan approved by the court in July 2014. Part of the plan involved the repayment of the Adductor loan by the end of March 2015.

■ As this has not occurred, the next step is normally for court to order liquidation of the group. However, as the Adductor borrowers are not directly part of this, the Special Servicer will continue in its attempts to seize control of the income while simultaneously encouraging the borrower to fully repay the outstanding principal.

The loan is in default.

The borrower entered into mandat ad hoc on 11 July 2012, four days before the Loan Maturity.

In April 2014, the borrower entered into conciliation but this did not result in any meaningful outcome.

The borrower has been attempting to obtain refinance from other banks to repay the loan but the Special Servicer has not yet been provided with agreed HoTs.

The Special Servicer has rejected various preliminary Discounted Payoff Offers.

Upon its request, a draft redemption statement was sent to the borrower during Feb-2015 but the Special Servicer has not yet received any follow-up.

Although CPI, the head of the borrower’s group structure, has not met the terms of its court approved restructuring plan and would normally be liquidated, it can be reasonably anticipated that the borrower will likely seek a short-term extension to the plan. In the meantime, the Special Servicer has instructed legal counsel to seize the entire rental income after which the borrower may file for insolvency.

5

Mülheim


Asset StatsAsset Stats

StrategyStrategy






29-Apr-2011


Q4 2015


No. of assets 1

Asset type Office

Valuation/Date

EUR 8,700,000 / May-2013

Location Germany

NRI 2,038,320

ERV 1,173,856

Vacancy 0.0%

WALL 0.25 years

The property comprises a modern office building complex with a total of 13,043 m² and a 312-space car park in Mülheim an der Ruhr in the Federal State of North Rhine – Westphalia, originally fully let to a single tenant GMG Generalmietgesellschaft mbH (Deutsche Telekom subsidiary).

In July 2011 the Special Servicer appointed a fixed charge Receiver over the shares, and replaced the Company Directors after enforcement of the voting rights.

The asset was last inspected in December 2014, the tenant still occupies the property.

The Loan is in default and was transferred to Special Servicing on 29 April 2011 due to a non payment on maturity.

The lease will expire 30 Jun 2015. The tenant has a one-off 5-year lease extension option. As the tenant has failed to serve a termination notice 6 months prior to lease expiry (by 31 December 2014), the lease contract will be on an indefinite basis after 30 June 2015 and can be terminated by either side at any time with a 6-month notice.

In 2012 Cushman & Wakefield were engaged as agents to sell the asset. The highest bids were less than the sum of the remaining rental income. Therefore, the strategy to wait until lease expiry and attempt to re-let the property was chosen.

The Special Servicer has approached the tenant to commence lease re-gear negotiations. Following the outcome of these discussions, marketing will commence.

6

Nordostpark


Asset StatsAsset Stats

StrategyStrategy






21-Nov-2011


Q2 2015


No. of assets 1

Asset type Office

Valuation/Date

EUR 43,400,000/ 01 April 2012

Location Nuremberg, Germany

NRI EUR 4,301,434

ERV EUR 3,598,360

Vacancy 55.0%

WALL 7.3 years

The property comprises 4 office buildings with a total area of 53,030 sqm (BGF, gross floor area) and a 3-storey-car-park in Nuremberg, originally fully let to single tenant Alcatel-Lucent.

The conversion process from a single-tenant to a multi tenant property is ongoing. Roughly 70% of all measures have been implemented.

A new 10-year lease with Alcatel-Lucent for ca. 30% of the property as the anchor tenant as well as 5 smaller leases were signed.

An SPA was negotiated since mid-2014 and was signed on 1 April 2015.

The sale was structured in a way that the purchaser first acquired the Nordostpark B-Piece loans and in a second step used the Nordostpark B-Piece lenders’ purchase option to acquire the securitized senior loan at par.

The loan sale was closed on 2 April 2015 and will lead to a full repayment of principal and interest of the Nordostpark Mortgage Loan (default interest remains outstanding) as well as a significant payment to the Nordostpark B-Piece lenders. Funds will be applied at April 2015 IPD.

The Loan is in default and was transferred to Special Servicing on 21 November 2011 due to an LTV covenant breach.

The Loan matured in October 2012.

Forced administration was initiated in November 2012 by the Special Servicer.

From January IPD 2013 onwards the post-default waterfall was applied.

The Nordostpark Mortgage Loan as well as the Nordostpark B-Piece loans have been transferred to the purchaser as of 2 April 2015.

Distribute funds at April 2015 IPD

Devices & Hardware

philips ppt 2015