Investor walks away from distressed mall portfolio

Lone Star hands back the keys to the Tiger Portfolio

Further evidence of the squeeze on private equity owners of shopping centres has emerged with reports that Lone Star has handed a portfolio of five UK centres back to its lender after values fell below the agreed loan-to-value ratio.

According to Debtwire the portfolio, comprising malls in Romford, Gloucester, Southampton, Falkirk and Aberdeen, was handed back to Austrian bank BAWAG which has agreed to retain the portfolio’s existing asset manager, Ellandi.

The move is unlikely to be the last of its kind. Asset manager APAM calculates that around 200 UK shopping centres worth £7bn have private equity owners who will either need to refinance loans as they mature or walk away from the assets.

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