Lone Star and Westbrook have sold a €145m loan secured on a German office portfolio to hedge fund Och-Ziff. Och-Ziff paid slightly more than €100m, according to a source linked to the deal. Centerbridge and Pimco also looked at the transaction.
The sold debt is a co-senior loan ranking pari-passu to a securitised senior loan in ABN Amro’s Talisman 7 CMBS. The €436.7m securitised loan is equal to around three quarters of the remaining balance of Talisman 7.
The debt is secured against the “Mozart” portfolio of German offices, retail and hotels that MSREF bought at the top of the market when it comprised over 110 properties and was valued at €1.2bn. Och-Ziff has “very limited rights; it is a passive lender”, the source added. The likelihood is that it will hold the debt to maturity, in April 2015.
CR Investment Management was appointed to asset manage the portfolio last year, since when 42 of the assets have been sold – many above valuation. Lone Star and Westbrook have made a significant profit because they acquired the €193m loan from Credit Suisse in 2009 at a deep discount to par. Its face value has reduced as a result of asset sales.