Northdale Asset Management has completed its acquisition of three UK shopping centres for £35 million, CoStar News understands.
The Project Maroon purchase comprises the Kingsgate Shopping Centre in Dunfermline, Scotland, the Vancouver Quarter in King’s Lynn and the Rushes Shopping Centre in Loughborough.
The properties have come out of the Elizabeth Finance 2018 DAC commercial mortgage-backed security. They were collateral for the £69.9 million Maroon loan in the Goldman Sachs-originated CMBS. The loan had an outstanding balance of £63.9 million as of June of this year.
Special servicer Mount Street said in June in a Stock Exchange announcement that it had reached an agreement to sell the properties for £35 million to an undisclosed buyer. CoStar News revealed that asset manager Northdale was the purchaser
The properties were originally bought by Oaktree Capital Management. In 2019, mezzanine lender DRC Savills Investment Management took control of the portfolio and paid around £5 million to cure a loan-to-value breach after Oaktree decided not to inject further equity into the securitised portfolio, as reported. DRC had provided £16.1 million of mezzanine debt against the portfolio. DRC Savills Investment Management withdrew completely from the CMBS in January 2022.
The by-then £64 million Maroon Loan was transferred to special servicing following a loan-to-value breach in April 2020. The three shopping centres backing the loan were last valued at £68.9 million in January 2020, before the pandemic. In April last year, rating agency Morningstar DBRS assumed a valuation of £50.4 million. Vancouver is the biggest of the three shopping centres, covering 365,082 square feet, followed by Kingsgate (289,716 square feet) and The Rushes (223,063 square feet).
In November 2021, CBRE resigned as special servicer and Mount Street took on the role.
Lunson Mitchenall advised on the sale. KLM advised Northdale.