Natixis has invited a handpicked group of five investors to bid for a circa £95m non-performing loan (NPL) portfolio secured by eight three-star Park Inn hotels throughout the UK.
The six separate loans are secured by the eight Park Inn hotels in Bedford, Birmingham, Cardiff, Harlow, Northampton, Nottingham, Thurock and Telford. The EBITDA performance of the individual hotels ranges considerably.
Natixis has offered the loans for sale only as a full portfolio.
Bids were received last Friday. From the invited group of five, CoStar News understands Fortress Investment Group and Kennedy Wilson were among the bidders.
Starwood Capital, Cerberus Capital Management, Patron Capital, Kildare Partners are thought not to have been among the invited loan bidders. It is still not clear who the other invited three parties are and whether or not they bid for the NPL portfolio.
The loans were originated to two separate groups of Danish investors by Natixis in 2006, one of which was a £76m loan securing six of the eight hotels to EjendomsInvest.
All of the loans are passed due and in default. The gross unpaid balance of circa £95m is inclusive of mark to market swap liabilities. The last valuation for the eight hotels was £57m, but was conducted in 2012 and is, therefore, an unreliable indicator of current value.
Pricing for the loan portfolio is expected to come in at between £62m and £65m, which would imply an approximate discount to gross liabilities in the early to mid 30%-range.
Natixis is understood to be deliberating whether to progress to a second round bidding process or move straight to a preferred bidder.
Back in May, Natixis ran a similar closed process for the sale of the £119m B-Loan underneath the Fordgate Commercial CMBS. Kennedy Wilson Europe (KWE) won the blind auction paying Natixis circa £37m, reflecting a near 70% discount.
All parties declined to comment.