{"id":5567,"date":"2013-10-08T13:21:58","date_gmt":"2013-10-08T12:21:58","guid":{"rendered":"http:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=5567"},"modified":"2013-10-09T15:40:55","modified_gmt":"2013-10-09T14:40:55","slug":"litigation-advances-in-the-cmbs-markets-could-lead-to-billions-being-reclaimed","status":"publish","type":"page","link":"https:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=5567","title":{"rendered":"Litigation Advances in the CMBS markets could lead to Billions being Reclaimed"},"content":{"rendered":"<p><span style=\"color: #000000;\"><strong><i>Ref. <\/i><i>Gemini Plc v CBRE &amp; Warwick Street (KS) LLP<\/i> and <i>Torre Asset Funding v RBS <\/i>[2013] EWHC 2670<i> <\/i>and <i>Citicorp Trustee Company Ltd v Barclays Bank Plc &amp; Ors <\/i>[2013] EWHC 2608<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\">At the end of 2012, there was an estimated \u00e2\u201a\u00ac154bn European CMBS (commercial mortgage-backed securities) debt still outstanding. Of that figure, an estimated \u00e2\u201a\u00ac22.8bn was scheduled to mature this year \u00e2\u20ac\u201c making the scale of the problem for European, and UK, banks substantial. <\/span><\/p>\n<p><span style=\"color: #000000;\">After several years of inactivity, perhaps due to a combination of losses not yet being \u00e2\u20ac\u02dccrystallised\u00e2\u20ac\u2122, a reluctance to jeopardise relationships which continue to be profitable and a lack of knowledge about when and how such claims can be pursued, the impending maturity for these loans has stirred many into action, and a number of litigations have begun against property valuers to try and recover some of these losses. <\/span><\/p>\n<p><span style=\"color: #000000;\">In June this year, we saw a claim for approximately \u00c2\u00a3100m brought against CBRE and Warwick Street (KS) LLP (formerly King Sturge LLP) by Gemini (Eclipse 2006-3) Plc. This follows hot on the heels of the approximately \u00e2\u201a\u00ac79m claim being brought by Titan Europe 2006-3 Plc against Colliers International. <\/span><\/p>\n<p><span style=\"color: #000000;\">The size of the Gemini claim reflects the extent of the company\u00e2\u20ac\u2122s losses, having had their 36-strong property portfolio collectively valued at \u00c2\u00a31.23bn, during the first half of 2006, against which Barclays Bank extended a \u00c2\u00a3850.36m senior loan and a \u00c2\u00a3105.24m junior loan. Unfortunately for the joint valuers, a valuation by GVA in March of this year showed that the portfolio\u00e2\u20ac\u2122s value had fallen by 68.17%, ie. \u00c2\u00a3838.45m to just \u00c2\u00a3396.5m. <\/span><\/p>\n<p><span style=\"color: #000000;\">The extent of the potential mistake there, bearing in mind the extreme reliance on the valuation and the liabilities taken on because of it, could be expensive for the joint valuers \u00e2\u20ac\u201c who nevertheless have stated clearly: <\/span><\/p>\n<p><span style=\"color: #000000;\"><i>\u00e2\u20ac\u0153CBRE and Warwick Street strongly believe that the valuation, which was undertaken in accordance with industry standards and practice, reflects the market value of the portfolio at that time. They consider that Gemini\u00e2\u20ac\u2122s claim is without merit and are confident that it will be dismissed if pursued in court.\u00e2\u20ac\u009d<\/i> <\/span><\/p>\n<p><span style=\"color: #000000;\">The number of CMBS related cases has stepped up this year, with both <a href=\"http:\/\/www.bailii.org\/ew\/cases\/EWHC\/Ch\/2013\/2670.html\"><span style=\"color: #000000;\">Torre Asset Funding v RBS<\/span><\/a> [2013] EWHC 2670 and <a href=\"http:\/\/www.bailii.org\/ew\/cases\/EWHC\/Ch\/2013\/2608.html\"><span style=\"color: #000000;\">Citicorp Trustee Company Ltd v Barclays Bank Plc &amp; Ors<\/span><\/a> [2013] EWHC 2608 reaching completion. Commentators believe it won\u00e2\u20ac\u2122t be long before we see more claims against negligent valuers in the courts, and many more settled early. <\/span><\/p>\n<p><span style=\"color: #000000;\">Full judgements are available via the links. <\/span><\/p>\n<p><span style=\"color: #000000;\">04\/10\/2013\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 \u00c2\u00a0 SRJ \/ LCB<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ref. Gemini Plc v CBRE &amp; Warwick Street (KS) LLP and Torre Asset Funding v RBS [2013] EWHC 2670 and Citicorp Trustee Company Ltd v Barclays Bank Plc &amp; Ors [2013] EWHC 2608 At the end of 2012, there was an estimated \u00e2\u201a\u00ac154bn European CMBS (commercial mortgage-backed securities) debt still outstanding. Of that figure, an &hellip; <a href=\"https:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=5567\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Litigation Advances in the CMBS markets could lead to Billions being Reclaimed&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"footnotes":""},"folder":[],"class_list":["post-5567","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Litigation Advances in the CMBS markets could lead to Billions being Reclaimed - Property Surveying NEWSLETTER<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=5567\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Litigation Advances in the CMBS markets could lead to Billions being Reclaimed - Property Surveying NEWSLETTER\" \/>\n<meta property=\"og:description\" content=\"Ref. 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Gemini Plc v CBRE &amp; Warwick Street (KS) LLP and Torre Asset Funding v RBS [2013] EWHC 2670 and Citicorp Trustee Company Ltd v Barclays Bank Plc &amp; Ors [2013] EWHC 2608 At the end of 2012, there was an estimated \u00e2\u201a\u00ac154bn European CMBS (commercial mortgage-backed securities) debt still outstanding. 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