Jaeger Alternative closes £50M property portfolio deal

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Jaeger AlternativeWorking in close co-operation with both the borrower and the existing lender, Jaeger Alternative Finance Corporation has closed a £50 million restructuring of a portfolio of industrial properties and grounds rents located throughout England. The borrower is a private investor with significant equity to protect.

The exiting lender, a UK clearing bank, suffers from a large book of legacy assets from the 2008 property market crash and subsequent failure of the real estate credit markets.  The lending relationship was among the largest in its legacy book, which resulted in a disproportionate effect on the bank’s capital reserves.  The exit was a matter of urgency, especially given the issues relating to a number of failed swap arrangements.

Rob Davies, CEO of Jaeger Alternative said:

“The transaction included the settlement of a number of bad interest rate swaps and potentially protracted litigation, de-levering through selective non-strategic asset sales and refinancing.  The refinancing included senior secured and mezzanine tranches, and is consistent with the borrower’s business plan to trade assets over the term.

“We were pleased to be able to execute a ‘work out’ that benefited the borrower and significantly reduced the lender’s non-strategic exposure.”