Starwood Capital Group may sell European loan servicer Hatfield Philips to US firm C-III Capital Partners when it completes the acquisition of Hatfield’s US parent LNR Partners.
US sources said C-III is lined up to buy Hatfield Philips when Starwood’s LNR acquisition goes through. Starwood, headed by Barry Sternlicht, agreed to buy LNR for over $1bn last October.
Hatfield Philips is Europe’s largest commercial property loan servicer, managing €25bn of loans against 11,000 properties.
LNR is a large player in the US distressed property market, the largest US special servicer and has a business that buys distressed loans, as does Starwood.
C-III Capital also has a US special servicing business. The group is chaired by Andrew Farkas, the New York real estate financier who engineered the Richard Ellis sale in the 1990s.