Newcomer CarVal lands Lloyds’ Pittsburgh Irish loans

CarVal Investors has bought the €350m Project Pittsburgh Irish non-performing loan portfolio from Lloyds. The opportunistic investment manager beat competition from the likes of Marathon and represents one of a fresh batch of loan buyers in Europe.

CarVal’s bid was initially backed by joint-venture partner Centerbridge Partners, but Centerbridge did not eventually participate in the all-equity deal. Rhino Investment Management acted as CarVal’s financial adviser on the transaction.

Separately, Apollo Global Management has won Lloyds’ €1.8bn Project Lane Irish loan portfolio over Lone Star. It paid £149m and the deal is expected to be completed in the first quarter of next year.

A consortium of Kennedy Wilson, Deutsche Bank, Och-Ziff and Varde Partners had offered to buy both Irish non-performing portfolios, together known as Project Pittlane, comprising 700 individual loans secured against 500 properties.

Allied Irish Bank has dropped plans to sell a smaller package of UK non-performing loans from its original Project Pivot portfolio (see October issue). AIB, advised by Citi, failed to get any bids near the reserve price of 40p in the pound.