Global law firm Reed Smith has helped Capita Asset Services (UK) Limited, on the restructuring of an approximate £76 million loan for a prime office block in the City, London.

The Reed Smith team, led by partner Leon Stephenson, started working on the restructuring for Mitre House, occupied by CMS Cameron McKenna, over a year ago when the loan went into payment default. The loan had been securitised and was one of the Eagle Office Portfolio Loans held by the CMBS issuer Cornerstone Titan 2005-1.

Leon and the team worked closely with Capita Asset Services in relation to standstill agreements and restructuring options which resulted in a consensual sale of the property to Mercer Real Estate Partners and discharge of the debt under loan agreement.

Leon Stephenson, Reed Smith finance partner, commented:

    “We have worked with Capita Asset Services for a number of years on transactions involving work outs and restructurings and have a close relationship with both the primary and special servicing teams there. This latest transaction demonstrates how we and Capita can work closely with borrowers under the loan facilities to achieve a consensual sale and maximise recoveries to the lenders”.

Reed Smith’s team principally comprised of lead partner Leon Stephenson, associate Ben Wulwik, and paralegal Kypros Santis.

Mitre House is a 188,675 sq ft office block at 160 Aldersgate Street. CMS Cameron McKenna’s tenancy of the building is due to end in 2015.