Servicing business heats up as CBRE lands coup

The competition is heating up around Europe for the business of servicing or working out portfolios of distressed or pressured real estate assets, securitised financings, or both. CB Richard Ellis landed a coup in summer when its newly-inaugurated Loan Servicing unit was appointed Special Servicer to the £1.45bn White Tower 2006-3 CMBS. Elsewhere in Europe, international groups are moving into the business.

The CBRE mandate to special service White Tower, of which the securitised portion is £1.15bn, was won from Hatfield Philips, a unit of US group LNR. Holders of the controlling Class B Notes voted to replace Hatfield, "recognising its unique blend of finance, real estate and loan servicing skills," CBRE said, and the appointment marks its growing track record in the market.

Hatfield Philips Managing Director Clarence Dixon declined to comment on the transaction to PIE at a conference in Brussels, but noted that, in general, deals change servicer quite frequently, and one loan securitsation can even have one company doing primary servicing of the performing portion, while the distressed is handled by a separate firm in Special Servicing. (Full story in PIE 133 on Monday 7 September)