European commercial real estate loan servicing and management business Mount Street has taken over Morgan Stanley’s European real estate debt servicing arm, Morgan Stanley Mortgage Servicing (MSMS).
The merger will increase the size of Mount Street’s commercial loan book to around GBP8bn and more than double its headcount in the UK and Germany.
Founded in 1998, MSMS was created as part of the build-out of Morgan Stanley’s European CMBS programme and acts as primary, special and master servicer across Morgan Stanley’s ELOC CMBS programme, as well as selected agency and third-party transactions. The MSMS team is located in London and Frankfurt, and provides servicing on loans in the UK, France, Germany, Italy, Netherlands, Belgium and Switzerland.
MSMS services commercial mortgage loans and CMBS, makes collections and monitors the underlying property collateral. The firm has loan servicing mandates amounting to a total of GBP4.5bn.
Mount Street, founded in 2013 by CEO Ravi Joseph and managing partners Paul Lloyd and Bill Sexton, is an independent provider of loan servicing and related loan management services to the European CRE sector. Based in London and Frankfurt, the firm has in the past nine months won more than GBP3.5bn in new business, including servicing of new loans, servicing of impaired loans acquired by secondary loan buyers, and special servicing and workout of legacy loans in older CMBS deals. Athe end of 2013, Mount Street took over part of the German CRE loan servicing business of Crown, the loan servicing business owned by private equity firm Forum Partners.
Joseph says: “We are delighted to have completed the acquisition of Morgan Stanley Mortgage Servicing – a business that has a great track record and reputation, and gives us a much larger platform in the CMBS space. Servicing is a very important part of what drives the performance and return on these loans, and Mount Street’s core objective is to bring a higher standard of professionalism and client service to this sector.”