Fixed Charge Receivership for Portfolio of 145 Properties

A portfolio of 145 residential properties based in Reading with a total bank lend of £35 million. This was a complex case and we were appointed due to a technical breach rather than an arrears breach.

Work Undertaken

The properties were largely tenanted residential properties and our team took control of the rental income prior to considering the optimum exit strategy. The bank debt was serviced from the rental income which was originally circa £130,000 per month. The Bank was expecting a loss of circa £17 million at the date of appointment.

Outcome

We put plans into place for phased disposal and managed the strategy from start to finish. This process was undertaken at the optimum time to take advantage of improving market conditions and, ultimately, the Bank’s loss was eventually estimated to be circa £3 million – representing a huge positive swing for the Bank. This liability was also potentially recoverable via litigation against third party professional advisors.