Lloyds readies Project Avon, IBRC’s Stone bids in, RBS’ Button bids due next Friday, NAMA receives Tower bids and readies Project Spring

Lloyds Banking Group has launched one of its final UK non-performing loan portfolios, Project Avon, in the midst of the most active period for legacy commercial property de-leveraging in the last four years.

LBG logo for webBy total unpaid loan balance, the £625m Project Avon is weighted 65% towards commercial property, or £406.25m, 20% residential, or £125m, and 15% land, or £93.75m, which includes up to 300 buy-to-let residential properties.

CoStar News understands that the current real estate value in Project Avon is estimatedat around £300m.

Around 65% of Project Avon’s underlying real estate is secured across regional England, with 20% secured by Scottish assets and 15% by London properties. Project Avon’s loan balance comprises around 70% of defaulted loans.

Deloitte has been appointed to sell Lloyds’ Project Avon.

Final bids in today for IBRC’s Project Stone

Binding bids will be submitted today on IBRC’s Project Stone, down to sub €9bn following individual tranche sales two weeks ago, with a mix of full and partial bidders expected to be lodged today.

Lone Star and Deutsche Bank are separately bidding for the entirety of Project Stone, while partial bids are expected from the CarVal Investors and Goldman Sachs Special Situations Fund consortium, and Apollo, Cerberus and Oaktree.

The 12-tranche Project Stone is a heavily distressed commercial real estate loan portfolio, with 42% of the gross unpaid balance, or €3.9bn, secured by Irish assets; 40%, or €3.7bn, secured by UK assets; 15%, or €1.39bn, secured by Continental European assets; with the 3% balance, or €279m, secured by properties in the rest of the world.

Bids due next Friday for Ulster Bank’s €844m Project Button

Considerable interest is expected at next Friday’s first round bidding stage (March 28) for Ulster Bank’s €844m Project Button, the RBS subsidiary.

Project Button is comprised of seven loans which is 35.6% whole loans, or €300.5m, and 64.4% syndicated loans, or €543.5m of the total.

The underlying real estate is comprised of around 4.66m sq ft, including 4m sq ft of retail and 660,000 sq ft of offices. There is also a very small amount of residential and development.

The centrepiece property is Dundrum Town Centre, Ireland’s largest shopping centre with over 169 tenants, for which the borrower is developer Joe O’Reilly. The office portfolio is comprised of assets owned by the Cosgrave property group.

Project Button is comprised of 72 assets, including 38 properties in Dublin over 2m sq ft, three assets in London and two in Scotland.

Eastdil Secured is selling Project Button. The sales process is understood to allow partial bids across the portfolio.

NAMA receives €1.8bn Project Tower bids and launches €300m Project Spring

Blackstone, Lone Star, Kildare Partners and a hedge fund submitted bids this week for NAMA’s €1.8bn Micheal O’Flynn loan portfolio, CoStar News understands.

NAMA is reading €300m Project Spring, a property loan portfolio linked to Irish developer Gerry Conlan, according to Bloomberg earlier this week. DebtX is selling Project Spring on NAMA’s behalf.

All parties declined to comment


About CoStar News

Finance Editor, CoStar News
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