The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Real estate restructurings: Senior noteholders take first, but not last, hit

Market faces workout logjam; System failing to cope

When Euromoney recently asked a CMBS expert what percentage of European deals outstanding would need to be restructured in some form, his rather chilling answer was "all of them". This alarming news came alongside a Moody’s announcement in late July that the first substantive losses in European CMBS had been realized following the liquidation of loans in three large multi-borrower transactions.

Losses on the senior notes in one of the deals, an RBS-originated synthetic single-borrower deal, are expected to be between 30% and 40%. This adds further pressure to the painful process of working out these deals and what is becoming readily apparent is that the system will not be able to cope.

So far most of the restructurings that have taken place in Europe have involved loan extensions. The Mall Fund agreed to a restructuring of its £1.1 billion ($1.7 billion) UK shopping centre CMBS on July 20.

Fleet Street

Cairn Capital, which has been involved in many of the European restructurings that have so far taken place, was appointed financial adviser to the borrower on the Fleet Street Finance 3 transaction in July – the deal faces loan maturities in early 2011.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree