30.10.09

By Deirdre Hipwell

Mark Kingston is latest property professional to be enlisted to help banks repair property loan books

Tishman Speyer’s former UK head Mark Kingston is advising Barclays Capital, the investment banking division of Barclays Bank, on the management of its £5bn European property loan book.

Kingston, who left the US property company last December, is working directly with Bar Cap’s real estate capital markets team, which is headed by managing director Christian Janssen.

About 20% of Bar Cap’s £5bn property loan book is secured against UK property and the remainder on assets in continental Europe, including Germany, Sweden, France and Belgium.

The bank has funded property investments in most sectors, including the retail, office, industrial, hotels, residential markets, as well as specialist asset classes such as self-storage, nursing homes, pubs and leisure.

Banking sources said Kingston is advising the Bar Cap team on the general “workout” and asset management of its on-balance sheet loan book, as well as working closely on particular projects.

He will advise on a range of issues, and deal with problem and impaired loans. Kingston is not thought to be advising on any of the bank’s securitised debt portfolios.

It is thought that Kingston, a qualified lawyer, has been brought in because of his property, finance and legal expertise, which provides a useful blend of experience, particularly in workout and recovery situations.

At Tishman Speyer, which Kingston joined in 1999 as European head counsel, he was responsible for managing London developments such as Tower Place, Millbank Tower, and Leadenhall Court. He also managed the sale of large buildings such as City Point in the City of London, which was sold for around £660m to Beacon Capital Partners.

Bar Cap is thought to be less exposed than other banks but still has a significant loan book that will have been affected by the property collapse.

Kingston’s advisory work will also help to bolster Bar Cap’s real estate team, which has been significantly restructured.

Janssen joined Bar Cap in June 2004 and has led the team since last year. He previously worked at US investment bank Morgan Stanley, where he was an executive director within the securitised products group.

Kingston is the latest property professional to be drafted in to advise banks on a consultancy or third party basis, or through other more formal joint venture arrangements.

Most banks have set up “workout” and recovery teams since the start of the year to help them manage property loan books that need to be refinanced or wound down within the next five to 10 years.

Earlier this month Lloyds Banking Group hired former Land Securities operational chief Mark Collins to help the restructuring of its distressed property loan book.

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Source: Property Week (www.propertyweek.co.uk)