Barclay brothers to submit bid for Patrick McKillen’s €800m Project Pebble loan book

Sir David and Sir Frederick Barclay will submit a discounted bid for Patrick McKillen’s €800m property loan book dubbed Project Pebble in Friday’s final submission deadline in the IBRC liquidation process, in an effort to secure overall control of the prestigious trio of Maybourne central London hotels.

ibrc-logoCoStar News understands that the Barclay brothers will bid for the entire €800m Project Pebble loan portfolio.

Project Pebble includes McKillen’s €246m personal loans from Anglo Irish Bank which is secured by a charge on his 36.2% stake in Coroin Limited, Maybourne Hotel Group’s parent company which owns Claridge’s, the Connaught and The Berkeley.

The McKillen Project Pebble performing loan book also includes a €241m loan secured against the Jervis Street car park in Dublin and €308m secured by properties in Doncaster, according to report by the Irish Times two weeks ago, which also outlines details of McKillen’s allegations against IBRC, its liquidators, NAMA, the Department of Finance and the Barclay brothers.

McKillen won a court battle on December 19 last year – the deadline for first round indicative offers on Project Pebble – for a High Court trial scheduled to start early next month with the aim of preventing KPMG from being allowed to sell his debt to the Barclay brothers.

The Barclay brothers, which own the remaining 63.8% stake in Coroin Limited, would have to wait for the outcome of the High Court legal challenge in the event that they are selected as KPMG’s preferred bidder.

The Barclay brothers may alternatively try to acquire McKillen’s debt from the highest bidder, in the event that they are unsuccessful outright in the blind auction process, CoStar News understands.

Yesterday, CoStar News reported the €27.7bn frenzy of live real estate loan portfolio deals currently in the market, including an update on the wider IBRC loan book sell-off process, NAMA’s €1.8bn Project Tower, Nationwide’s €850m Project Adelaide and much more.

To read the report, please click here.

All parties declined to comment.

About CoStar News

Finance Editor, CoStar News
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