Bond-holders have appointed an operating adviser to the mortgage-backed security in which Brian and Dr Mary Pat O'Donnell hold their 15 Westferry Circus office block in London. Palatium Investment Managers is to advise the bond's special servicer, Morgan Stanley, "about various matters in relation to each specially serviced loan" including the possible "appointment of a receiver or similar actions to be taken".


The Class G bond-holders, who make up just £18m of the £493.5m security, have also asked Palatium to advise Morgan Stanley on amendments, waivers or modifications of any terms applicable to the loan documentation "which affects the amount payable by the relevant borrower or the time at which any amounts are payable, or any other material term of the relevant loan documentation".


Palatium will also look at any "action taken in order to ensure compliance with environmental laws at the relevant property" and "the release of any part of a specially serviced loan's related security, or the acceptance of substitute or additional related security other than in accordance with the terms of the relevant loan documentation".


The O'Donnells bought Westferry Circus in 2005 for £134.8m. The market value when it was placed in the mortgage-backed security, which listed on the stock exchange in 2006, was £145m. The tenant is Morgan Stanley and the net annual rental income at that stage was just over £8.2m a year.


The company through which the O'Donnells own 15 Westferry Circus, had also borrowed from Bank of Ireland and the shareholders, the prospectus for the bond states, "but these are subordinated to the 15 Westferry Circus Whole Loan pursuant to separate subordination agreements". O'Donnell could not be contacted for comment.


The bond-holders requested the appointment of Palatium in November. The proposal was passed unanimously.