Toys R Us property sale stalled by high court claim

Toys R Us

A legal claim filed by CBRE could bring a Toys R Us sale to a standstill according to a report by Property Week.

CBRE was last month appointed as special servicer to a £263 million CMBS loan secured against 24 stores and a distribution centre occupied by Toys R Us before it fell into administration in February.

With the properties now vacant, CBRE has filed a claim against Solutus, its director Neil Forkin and Bollinway Properties, which is attempting to buy the properties.

A group of Toys R Us bondholders announced in August that they had appointed CBRE to replace Solutus as its special servicer.

Forkin was previously the receiver to the Toys R Us properties and the bankrupt company that owned them.

CBRE then issued a statement confirming it had replaced Forkin on August 24 with two of their own directors.

Since then, a second statement from CBRE has confirmed the company received an email from Forkin which detailed Bollinway Properties’ right to exercise a purchase option it had agreed with Solutus.

This would allow Bollinway to buy the portfolio for the amount outstanding of the £263 million CMBS loan.

Six of the original properties in the portfolio were sold in June for £31 million, leaving £232 million outstanding on the loan.

That purchase option was agreed on August 12, before Forkin was replaced.

According to reports, CBRE has now filed a claim to block the sale of Toys R Us’ portfolio and has asked the court to confirm that the purchase option was not valid, with Forkin no longer in control of the portfolio or the bankrupt company that owns it.

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