Ulster Bank lines up Eastdil Secured to push Button for €846m debt disposal

Ulster Bank has instructed Eastdil Secured to find a buyer for an €846m Irish and UK commercial real estate loan portfolio called Project Button. The book comprises both performing and non-performing whole and syndicated loans, which RBS’s Northern Irish subsidiary issued to six borrowers.

They are secured against 1.4m sq ft of retail and 400,000 sq ft of offices, as well as hotels, warehouses, some housing and development land. The well-let, institutional-quality assets are mainly concentrated in Dublin, although 17% of the collateral is London-based.

The portfolio offers a stable cash flow with upside, as over 95% of the commercial properties are leased. Ulster’s first sale took place only last week – it sold debt secured mainly on residential assets to Irish REIT Hibernia for €67m. The portfolio came out of RBS Capital Resolution, the new internal bad bank.