Lone Star buys bulk of Anglo’s UK loan book for €4.8bn

The US fund Lone Star has acquired the bulk of Anglo Irish Bank’s €7bn UK loan book sold by the special liquidators for IBRC.

The UK property news portal, CoStar, has reported that the €7bn par value loan book was sold for €4.8bn, which is a discount of just over 30%.

A spokesperson for the special liquidators for IBRC, KPMG, declined to comment on the price.

“The special liquidators are very pleased with the successful conclusion of loan sales in respect of three major portfolios of IBRC loans, namely Rock, Salt and Evergreen.

“Thus far, market interest in IBRC’s assets has been confirmed with the conclusion of sales at bid levels that exceed independent valuations conducted on these books. The sales process is continuing on the remaining books according to the programme previously set out by the special liquidators,” said KPMG’s Kieran Wallace and Eamonn Richardson in a statement

Project Rock was made up of 816 individual loans and Project Salt comprises 609 individual loans. According to reports, the loans are secured on assets that include Sunderland’s football ground, the Stadium of Light, as well as an array of holiday parks and leisure complexes. Two loans within Project Rock went to Sankaty Advisors, LLC/ Canyon Capital Advisors LLC consortium.

Subject to legal completion none of the IBRC loan assets within these books are expected to transfer to Nama, said KPMG.

Following the liquidation of IBRC in February 2013, the Minister for Finance Michael Noonan announced that its loan book with a par value of roughly €22bn would be put up for sale. Any loans that were not sold at the end of the divestment process would be transferred to Nama.

Nama paid the Central Bank €12.9bn for a floating charge on IBRC’s assets.

Earlier this month Mr Noonan said he expected assets with a par value of between €5bn-€6bn to transfer to Nama.

The Dallas headquartered Lone Star has been very active in the Irish market over the past few years. It has acquired Nama’s assets, including Project Holly, as well as a portfolio from AIB.

Remaining IBRC loan portfolios include Project Sand, which comprises 12,700 former Irish Nationwide mortgages with a par value of €1.8bn. Phase two binding bids conclude on March 14.

Project Stone is mostly Irish commercial real estate assets with a par value of €9.3bn. Phase Two binding bids, which commenced on February 17 will conclude on March 21.

Project Pebble, a further portfolio of commercial real estate loans originated through the Irish offices of IBRC with a par loan value of approximately €800 million: Final bids were received on February 21 and are currently being evaluated, according to KPMG.


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