The Syrdall business park in Munsbach, Luxembourg is facing a forced sale after its owners defaulted on the loan backing the asset due in April 2011.

Special servicer Hatfield Philips said in a notice on Tuesday that it is currently in discussion to appoint an appropriate marketing agent to dispose of the business park, which was last valued at just less than EUR 35.5 mln.

The Syrdall loan was provided in 2006 to finance the purchase of the property and then securities by Credit Suisse in the Titan Europe 2006-3 CMBS vehicle.

The property has shed some 25% of its value over the past 18 months, reflecting lack of investor appetite for non-prime assets in the Luxembourg market. At end-June 2011, the asset was valued at EUR 35.5 mln, against debt of just over EUR 36 mln.

In addition, the vacancy rate of the Syrdall Business Park Property has increased from 12.39% in 2009 to 13.8% in 2011. The scheme was built in 2002 and offers 10,500 m2 of office space multi-let to four tenants.