Offices

Morningstar DBRS believes the outstanding loan balance is higher than the value of the assets, as rental income declines and vacancy increases.

The firm’s head of real estate debt strategies sees more opportunities for non-bank lenders.

The debt was provided to Finnish company Technopolis, owned by manager Kildare.

Kay Wolf, chief executive officer, says the German lender is focused on disposing of loans but will reinvest the capital in new business.

A loan from six banks funded the €880m purchase of offices for a retrofit project without a lease.

The landlord has sourced £533m of fresh financing but faces a wall of office-related debt maturities in the coming years.

The CMBS special servicer will leave the valuation in draft form until the future of the asset’s key tenant is clearer.

The financing replaces construction debt put into place in 2019.

Christof Winkelmann, chief market officer at the German bank, said the lender successfully dealt with troubled hotels during covid-19 and will do the same with its US office exposure.

The borrower acquired 50 Fenchurch Street in 2022 and plans to develop a circa £1bn office tower.