As the volatility in the commercial property market continues, it is important for lenders to understand how the current value of their security can be improved through active asset management and where necessary, implementation of enforcement options in respect of non-performing loans.
Our multi-disciplinary team provides a flexible and responsive service to meet the needs of lenders and borrowers, advisers drawing upon CBRE’s extensive sector coverage and market intelligence.
The Loan and Corporate Recovery (LCR) Team provides two combined service lines working alongside Real Estate Finance and Valuation Advisory, which include:
Strategic Advisory
Law of Property Act (LPA) & Fixed Charge Receivership
Strategic Advisory
The LCR Team offers strategic advice providing bespoke independent business plan reviews to support lenders, borrowers, asset managers and potential investors in maximising recovery proceeds. Our reviews cover:
Review of property/portfolio security and underlying valuations:
Assessment of borrower’s business plan
Recommended CB Richard Ellis asset strategy focusing on recovery proceeds and timing
Bespoke financial modelling including cash-flow forecasts at asset and debt level
The Four Stage Strategic Review model provides an overview of the CBRE process.
They provide a single point of contact for worldwide portfolio reviews. See our Track Record below.
LPA & Fixed Charge Receivership
In loan security enforcement situations, the LCR Team is actively engaged in assisting lenders with managing their non-performing loans secured against real estate assets. Where it becomes clear that enforcement action may be necessary our RICS Registered Property Receivers and Fellows of the Association of the Property and Fixed Charge Receivers are suitably qualified and experienced to accept Law of Property Act (1925) and Fixed Charge Receivership appointments.
Our team has the experience to implement the most appropriate management strategy for each property, whether it is to hold and manage, complete/undertake works or market the asset for disposal.
Where LPA or Fixed Charge Receivership is the most appropriate option, the Receivers take control of the property and may choose to work with other CBRE teams, in London and through our regional network, to implement the most efficient strategy for the realisation of the Bank’s security.
We also work extensively with, and alongside, Insolvency Practitioners, where the bank has decided to enforce its security via the administration route.
Where there is a consensual restructuring agreement between Bank and Borrower, the LCR team can carry out a performance testing and monitoring role based on the agreed revised business plan.
United Kingdom
