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Apollo and Deutsche Bank buy €1.5bn of Irish NPLs

Irish bank Permanent TSB is selling €1.5bn of non-core largely commercial real estate loans to Havbell, a new vehicle funded by Deutsche Bank and funds affiliated with Apollo Global Management.

Irish bank Permanent TSB is selling  €1.5bn of non-core largely commercial real estate loans to Havbell, a new vehicle funded by Deutsche Bank and funds affiliated with Apollo Global Management.

They are paying approximately €0.8bn; equivalent to the book value of the loans at 31 December 2014 and the sale is expected to close before the end of June.  The assets backing the loans are spread across Ireland.

The sale is part of a €5bn disposal of non-core assets. Cerebus is buying the bank’s UK subsidiary, Capital Home Loans,  including its servicing platform and the £2bn mortgage book, which is mostly performing, well-collateralised UK buy-to-let loans, plus two securitisation vehicles Auburn 4 and 5, which have £500m of loans.

Cerebus is paying £1.8bn for the package, against a book value of £2bn at  31 December 2014.

The bank, which was nationalised during the Ireland’s financial crisis, failed the European banking stress tests last year, registering a capital shortfall of €855m.

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