LAP and Oaktree walk away from Harrogate portfolio
Mezzanine loan provider DRC is to take over the Harrogate portfolio of shopping centres, comprising the Kingsgate shopping centre in Dunfermline, the Vancouver centre in King’s Lynn and the Rushes in Loughborough, after London & Associated Properties and Oaktree saw their equity wiped out by a fall in values.
A revaluation by the senior lender identified a breach of the loan to value covenant and the joint owners declined to inject new equity to cure the breach.
LAP currently asset and property manages the portfolio though its wholly owned subsidiary LAMS for which it receives annual gross fees of approximately £400,000. LAMS’ exit from these management contracts is being negotiated.