Lloyds’ UK Project Forth joins list of slated debt sales

Lloyds is marketing Project Forth, its third UK loan portfolio, and has received first-round bids for the €2bn Project Pittlane Irish loan portfolio.

Project Forth is a nominally-£700m valued non-performing loan book being marketed by Morgan Stanley, secured against around 100 properties mainly in northern England and Scotland.

Lloyds is seeking initial bids by the end of next month and hopes to seal the deal this year. It appointed Deloitte to market the Pittlane assets, which are expected to sell at a big discount.

Last month Lloyds sold the £625m, 70-asset Project Harrogate to Oaktree Capital Management at an almost 60% discount. It was the bank’s second UK disposal, following the £923m Project Royal, which it sold to Lone Star last year.

Other European real estate loan portfolios sold this summer by Lloyds and others include: Project Prince, €360m of Irish non-performing loans Lloyds sold to Kennedy Wilson and Deutsche Bank for €61.2m in June; and NAMA’s sale of the £103m UK Chrome portfolio to Development Securities and Pears Group.

Cerberus Capital Management is vying with Kennedy Wilson and Deutsche Bank for Allied Irish’s £383m Project Pivot sub- performing UK loan portfolio. Final bids are due this month.

Lone Star, a venture between Kennedy Wilson and Varde Partners, and Goldman Sachs’ Special Situations Fund are in the running to buy AIB’s €645m Project Kildare Irish non-performing loan portfolio. The €129m of securitised debt secured against the Velvet portfolio of distressed German homes is also back on sale, for a second time.

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