IBRC’s joint special liquidators, Kieran Wallace and Eamonn Richardson of KPMG Dublin, have confirmed details of four UK and Irish property loans portfolios, worth collectively €22bn, and known as project Rock, Sand, Evergreen and Stone.
- Project Evergreen: Irish originated corporate loan book comprising borrower groups operating across a diverse range of businesses and sectors with a Gross Loan Balance of c.€3.5bn.
- Project Rock: UK originated commercial real estate loans with underlying collateral spread across the UK (78%), Germany (12%) and the US (7%) by real estate value with a Gross Loan Balance of c.€7.8bn.
- Project Sand: Irish originated residential mortgage loans predominantly secured on Irish collateral comprising a Gross Loan Balance of c.€1.8bn.
- Project Stone: Irish originated commercial real estate loans with underlying collateral spread across Ireland (42%), the UK (40%), Continental Europe (15%) and the rest of the world (3%) by real estate value and comprising a Gross Loan Balance of c.€9.3bn.
A spokesperson for the Special Liquidators said: “The upcoming sales process has been keenly anticipated in the market and will provide investors with a unique opportunity to acquire loans within a c.€22 billion loan book spanning multiple jurisdictions and loan asset classes.
“Based on the inquiries received by the Special Liquidators since their appointment in February, and the diversity and spread of the assets that will be on offer, it is expected that there will be strong interest in acquiring IBRC Loans among investors with a variety of strategic and value interests.”
The Preliminary Market Sounding process is part of the overall loan sales process being implemented by the Special Liquidators which includes:
- independent professional valuation of the IBRC Loans;
- professional advice on the sales strategy;
- communicating with IBRC borrowers;
- preliminary market soundings including the provision of a Confidential Investment Overview to potential purchasers and funders, and
- the sales process which will likely comprise indicative offer, binding bid and closing phases.
There will be a degree of overlap with phases of the overall process operating in parallel as the sales process progresses for different groups of IBRC Loans. The first phase of the sales process is expected to commence in September.
No decision has been taken by the special liquidators regarding how the IBRC loans should be sold, and who may qualify to make a bid.
The special liquidators are obtaining professional advice and will consider representations from borrowers and other obligors before making such decisions.