Property investor Glen Maud, a joint venture partner of property adviser Derek Quinlan in the purchase of the Banco Santander headquarters in Spain, has seen the value of one of his portfolios breach its loan to value (LTV) covenants.

Commercial Mortgage Backed Securities (CMBS) are secured by a loan on a commercial property. The one involving Maud's portfolio is listed on the Irish stock exchange.

Ratings agency Fitch last week downgraded its class C, D and E notes and revised the outlook of the class B notes to 'negative' from 'stable'. It said its action was "driven by the substantial deter­ioration in portfolio value".

The portfolio comprises 36 properties in the UK and a revaluation of them in September suggested their market value had slumped 30% since November 2006 when the CMBS was issued. It is due to mature in 2016.

"The most recent valuation results in an LTV on the securitised and subordinated loans of 106.1% and 119.2% respectively," Fitch said.

Barclays Capital Mortgage Servicing has told Fitch that Maud's company, PropInvest, is seeking to refinance the portfolio. The rating agency said "the refinancing is unlikely to occur at this stage; however, given market conditions and the relative stability of the income profile, the foreclosure option also seems unlikely in the near future".

In unrelated transactions, Maud's company PropInvest partnered Quinlan for the €1.25bn purchase of an office tower in London's docklands and completed the €1.9bn acquisition of Santander's HQ.