KPMG confirms Project Stone winners and announces Lone Star and Oaktree win majority of Project Sand

KPMG’s Kieran Wallace and Eamonn Richardson, the special liquidators of IBRC, have just confirmed the completion of the sale of the majority of Project Stone and Project Sand, which takes the total sales across the five NPL portfolios to €19.8bn out of a total book of €21.7bn.

In a statement released at 15:54 GMT today, KPMG confirmed that 85% of the €9.3bn nominally-valued Project Stone has been sold to four buyers: Deutsche Bank, Lone Star, CarVal Investors and Goldman Sachs in relation to the loan portfolio tranches and to a number of other third parties in relation to single borrower connections.

This is consistent with CoStar News’ story on Friday, which can be seen here.

In addition, 64% of the €1.8bn Project Sand has been sold to Lone Star and Oaktree Capital Management. 

The statement said: “The conclusion of these five largest loan portfolio sales processes has resulted in the sale of IBRC loan assets with a par value of approximately €19.8bn out of a total book of €21.7bn. The special liquidators will continue to work with NAMA to ensure repayment of the outstanding facility deed debt owed to it through cash receipts and banking assets.”

The purchasers that have acquired mortgage loans as part of Project Sand have agreed to direct that the mortgage loans are serviced in accordance with the terms of the Central Bank of Ireland Code of Conduct on Mortgage Arrears. 

The special liquidators will begin communicating with loan and mortgage customers immediately to inform them of the outcome of the sales process directly. Customers with any queries should refer to the IBRC website or contact their normal contact points in IBRC.

The special liquidators said in the statement: “The sales process for the IBRC loans, including their segmentation to meet demand from international buyers, has delivered a very positive result with over 90% of IBRC’s loan assets now sold within 14 months of the Bank’s liquidation. The response of markets to the liquidation and sales process has exceeded our expectations.”

Lone Star has been the overall greatest winner from the accelerated IBRC wind-up, having five weeks ago won the entire two-tranche Project Salt and 12 of the 14-tranche Project Rock for a combined face value of just over £5.2bn.

Project   Sold Par value of loans
Evergreen Corporate loans 84% €2.5 billion
Rock and Salt Commercial real estate loans originating through the UK businesses of IBRC 100% €7.3 billion
Pebble Commercial real estate loans 100% €0.8 billion
Stone Commercial real estate loans originating through the Irish business of IBRC 85% €9.3 billion
Sand Mortgage lending 64% €1.8 billion


About CoStar News

Finance Editor, CoStar News
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