CMBS: We can’t work it out
CMBS: The value of loan-to-value
REC Plantation Place, a £527 million ($776.2 million) CMBS deal signed in 2006, is backed by a central London office building. This deal was the first in Europe to breach its LTV covenant, in August 2008. The issuer is a listed fund and was therefore required to undertake a valuation. The breach occurred despite an equity injection of £4 million by Invista Property Foundation Trust in March 2008.
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