Dealing with non-performing loans secured by real estate assets.
Sometimes loans have problems. Circumstances change and the borrower’s original intentions can’t be fulfilled. We can help both lenders and borrowers find a solution where the loan is linked to, and secured by, real estate investments. Our aim is to help maximise the value that can be recovered from the secured asset, as maximising value will be in the interests of both the lender and the borrower, its customer.
- We can provide routine market updates focussing on particular sectors to help lenders stay aware of market trends.
- As concerns mount over individual loans or classes of loans, lenders may want a review, both to ascertain the current value of the asset and to look at anticipated future performance and what steps can be taken to best protect value.
- Where a borrower is proposing to carry out works to the subject property, or to make other changes, we can advise on the anticipated impact on value or trading performance.
- Where works or changes are to be undertaken, we can provide oversight for the lender, particularly if the lender is providing additional funding to support such works.
- Where a loan isn’t performing for the lender and decisive action is being considered, we can advise on enforcement options. Whether following a consensual approach, or appointing a fixed charge (LPA) receiver, or placing the company into administration is the right approach will need to be carefully examined to assess the best course.
- We have experienced and qualified fixed charge (LPA) receivers who accept appointments to take control of the asset(s) and, working with the lender, to recover the loan either through delivering a quick sale or holding the property to stabilise it and undertake such asset management initiatives as are appropriate and agreed. We also have the experience of working with Insolvency Practitioners, appointed as Administrators or Liquidators, and providing the support they need to maximise the recovery from a corporate insolvency.
Why Gerald Eve?
- We have an experienced team focussing on Value Recovery drawn from across our business with backgrounds in valuation, asset management and receivership.
- We are organised by property sectors, meaning our valuation teams have a deep understanding of the asset type they specialise in dealing with. This includes specialist investment classes – e.g. hotels, leisure and healthcare – as well as traditional investment categories of offices, retail, industrial and residential.
- We have the largest planning and development teams of any real estate advisory firm. When dealing with non-performing loans where exploring alternative use or development potential may be crucial if recovery is to be maximised, the skills of the planning and development team are a game-changer.
- We are a partnership. We have no external owners or investors and we are therefore fully independent.
- We have a substantial Capital Markets business; our Value Recovery team are therefore well informed by what is happening now in the property investment world and therefore the trends that are impacting value