Highbrook CMBS deal averts Breevast auction

New York-based investment fund Highbrook Investors will help Breevast repay the remaining debt tied up in the Mesdag Delta CMBS, averting foreclosure on Breevast's 55-property strong Dutch portfolio.

Hedge fund Davidson Kempner Capital Management, also based in New York, took control of the CMBS in February of this year with a price tag of €615 mln and subsequently announced plans to sell the 55 underlying properties, worth a reported €550 mln.

The portfolio includes Tommy Hilfiger's former head office in Amsterdam and the NH Hotel on the Jaarbeursplein in Utrecht (pictured).

According to a statement by HighBrook and Breevast to PropertyEU's sister publication PropertyNL, HighBrook Investors has entered into a binding and unconditional agreement with Breevast to acquire and recapitalise the entire portfolio.

'Breevast is happy with the cooperation with HighBrook, enabling the business plan to be completed,' said Henk Brouwer of Breevast. The announcement has been shared with the Dutch land register.

The proposed transaction is expected to be completed in the short term and will result in a full payment of the existing loan held by Davidson Kempner.

Breevast ran into difficulty in recent years because of loan defaults caused by a sharp drop in the value of the underlying assets. The 55 assets cover nearly 460,000 m2 of total space and consist of 18 office buildings, 16 industrial properties, nine shopping centres, six high street stores, a hotel, two residential properties and a plot of land.

Read more at Breevast's Dutch portfolio to be auctioned off 


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