There’s been increasing pressured on failed Industrious Group, which has GBP 490m in commercial mortgage backed securities (CMBS) debt on its portfolio of industrial properties. It now appears that Max Property is determined to take those properties off its hands, for just GBP 232m.
That means someone is set to lose quite a bit money. Specifically, the holders of B through F class bonds in the CMBS structure are likely to come out with nothing. The Fitch rating agency has said holders of the A class bonds (as in, the supposedly risk-free paper) would collect between 51 and 70 percent of the GPB 310m they are owed. Bondholders could still potentially kill the deal, betting they could do better elsewhere in the current UK environment.