Hatfield Philips Comments On Windermere X CMBS

                Hatfield Philips Comments On Windermere X CMBS

- Notes Credentials and Established Track Record Servicing Loans within
Portfolio -

PR Newswire

LONDON, June 4, 2014

LONDON, June 4, 2014 /PRNewswire/ -- Hatfield Philips International ("HPI"),
Europe's largest independent commercial real estate loan servicing firm,
comments on its credentials and performance as loan servicer and special
servicer on the Windermere X CMBS Portfolio (the "Portfolio").

As outlined in a detailed presentation to noteholders on 11 March 2014, HPI
notes the success of its ongoing efforts to maximise the recovery on the
Bridge Loan, the Lightning Dutch Loan and the Built Loan. Specifically, HPI
highlights that with each of the aforementioned loans it is pursuing a
strategy to maximise the recovery to the noteholders in the most appropriate
and cost effective manner in accordance with the Servicing Standard.

As it relates to the Bridge loan, HPI explains that shortly after the loan was
transferred to special servicing it successfully took control of the borrowing
entities through enforcement on Luxembourg share pledges. HPI carefully
considered the best approach to asset management for the portfolio. Valad was
selected as the asset manager through a competitive process. Together with the
property manager, HPI and Valad have arranged a seamless transition of asset
management responsibilities. As a result of the change in asset management and
the enforcement on the shares, the new directors will be able to make all
decisions related to the leasing and sale of the properties without the burden
of negotiating with the previous sponsorship. Frequent updates through
noteholder calls will occur as the business plan is implemented.

Additionally, as it relates to the Italian loans, IFB & Pavia and Enel Tower,
HPI explains that it worked with the existing borrower to extend the loans. As
part of the extension, HPI was able to require the borrower to meet specific
milestones for leasing and sales for further extensions up to a total of two
years. HPI notes the extensions were completed by HPI in its capacity as
primary servicer, with fees paid by the borrower group. Importantly, HPI
highlights that if the loans had been transferred to special servicing the
amount of fees would have been greater than the extension and monitoring fees
that have been charged by HPI.

In regards to the Lightning Dutch Loan, HPI notes steps it has taken to
stabilise the property including arranging a new asset manager to take control
of the property and stabilise individual tenancies after the bankruptcy of
TCN, the previous head tenant. TCN had direct relationships with all the
occupants through sub-tenancy relationships. Based on extensive business,
financial and property analysis, the continued success of the incumbent asset
manager and the developing market in the Netherlands, HPI is evaluating
different solutions to maximise the recovery. These options include a hold and
sell strategy or a sale through enforcement or on a consensual basis.

In discussing the Built Loan, HPI calls to attention the stabilisation of the
existing tenancies through lease negotiations and preparation of the
properties for sale. HPI notes the size of the loan and the structure of the
borrowing entities did not lend itself to an efficient method to enforce the
security. HPI remarks that its efforts have enabled it to best work with the
existing borrower to help maximise the value of the properties prior to sale.

Given its current performance and track record of success working on behalf of
all noteholders to maximise the recovery on the non-performing loans that make
up the Portfolio, HPI believes it is best suited to continue to act as special
servicer. HPI also comments that changing special servicers – per the request
of an entity that HPI believes is no longer the Controlling Class
representative – could jeopardise the considerable progress HPI has made on
the Portfolio to date.

Furthermore, HPI notes its considerable experience and exposure servicing
loans backed by German, Dutch and Italian properties. HPI highlights that it
is the only commercial real estate loan servicer with a rated German platform,
which it believes it a significant competitive advantage given the Portfolio's
German exposure. HPI brings to the attention of noteholders that its proposed
replacement currently has no operations in Germany and a limited track record
of success in Italy.

HPI requests all noteholders in the Portfolio to closely examine its
qualifications and track record, the facts regarding its history of
performance on the Portfolio and the flawed directive to replace the firm as
special servicer and to query the relationship between the former Controlling
Class and the proposed replacement special servicer. HPI also professes its
strong belief that the conditions for its termination as special servicer, as
outlined in the Servicing Agreement, have not been satisfied.

About Hatfield Philips International Ltd.
Hatfield Philips International is one of Europe's largest primary and special
servicer with over £15 billion assets under management. Since its inception in
1997, the Company has established itself as a full-service loan servicer,
offering a complete suite of products and services to a wide range of clients
that issue, own or invest in commercial mortgage backed securities and loan
portfolios. Hatfield Philips is a subsidiary of LNR Property, a United
States-based real estate investment, finance, management and development firm,
which was acquired by Starwood Property Trust (NYSE: STWD) in April 2013.

Media Relations:
Jason Chudoba
ICR, Inc.
Phone: +1-203-682-8200

SOURCE Hatfield Philips International

Website: http://www.hatfieldphilips.com
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