European CMBS loans saw a slight decrease in repayments during the month of May, according to figures reported by Fitch Ratings Maturity Repayment Index.
Repayments declined to 15% from 17%, offsetting the slight improvement seen in the prior month.
The fall in the index was largely driven by the failure of Tahiti Finance Plc to repay at its scheduled maturity date. Of the total £493.5 million ($723 million) balloon balance, only £29 million was repaid using funds held in the borrower's general account and the dividend ledger.
The borrower is currently in discussions with the servicer regarding a restructuring proposal that includes an extension to the maturity of the loan.
The loan is currently in standstill until July 1 while negotiations surrounding the proposal are finalized.
None of the loans that had matured in previous months were repaid in full, increasing the total outstanding matured debt balance to €5.3 billion at the beginning of June from €4.2 billion in the previous month.