Deutsche Bank leads the winners of IBRC’s penultimate non-performing commercial property loan portfolio, Project Stone, with the spoils shared between three separate individual and consortium private equity funds and investment bank winners.
KPMG, the special liquidators of IBRC, has carved up the circa €9.3bn Project Stone loan portfolio and sold it piecemeal for around €3bn, reflecting an approximate two-thirds discount to gross unpaid balance although this masks the variation in pricing between the eight tranches.
CoStar News understands that Project Stone has been sold as follows:
- Deutsche Bank has won tranches 6 and 7, the two largest tranches by nominal balance and highest quality of assets within Project Stone;
- A small number of original tranche 7 loans fell out of the sub-pool and have been won by Lone Star;
- CarVal Investors and Goldman Sachs Special Situations Fund, alongside minority equity partner Pepper Asset Services, have won tranches 1, 2 and 4. Tranches 1 and 4 were among the most distressed sub-pools and are understood to have traded for the steepest discounts;
- Lone Star has won tranches 3 and 5, in addition to a small number of loans originally within tranche 7. Tranche 3 traded a steep discount but shallower than tranches 1 and 4;
- CarVal Investors has won tranche 8 on its own.
A small number of individual loans within Project Stone traded at the turn of the month, as part of an announcement by KPMG on 5 March.
Additional underbidders which won none of the Project Stone loans included Apollo and Oaktree.
Project Stone is a heavily distressed commercial real estate loan portfolio, with 42% of the original 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.
All parties declined to comment.