Wave of bank portfolios hits the market

Lloyds, Sareb, NAMA and RBS are among the lenders marketing nine big asset and loan packages

At least nine large portfolios of loans and assets owned by UK, Irish and Spanish banks are on the market.

Lloyds is selling three, a further three are coming from Irish banks or bad banks and two from Spanish bad bank Sareb, with a third lined up.

In addition, Bank of Ireland has received approval to exit its business and corporate banking activities in the UK, which includes lending on property. An investment memorandum is expected imminently.

Deutsche Bank is closing in on the sale of the €1.9bn largely performing UK lending book of its subsidiary Deutsche Postbank, with Ares Capital/Citi and JPMorgan/Renshaw Bay shortlisted.

Lloyds has invited bids across each or all of three separate portfolios that comprise the circa €1.5bn Project Hampton multi-jurisdiction loan book it has brought to market.

Deloitte is handling the process and has issued an information memorandum to investors. First-round bids are scheduled for 3 October.

Cerberus and Deutsche Bank are the final bidders for Lloyds’ €450m ‘Project Indie’ loan, secured on 47 secondary German industrial and office assets in the German Activ Fund managed by Valad Europe. They are vying to buy at around 60-70 cents on the euro (see pp22-23).

A third Lloyds portfolio, the £300m Project East, secured on 30 UK hotels, has been soft marketed by KPMG but has not yet been formally launched.

In Spain, Sareb has received first-round offers for a portfolio of repossessed flats and half-finished developments called Project Teide and has called for indicative offers early next month on its first commercial portfolio, of Madrid offices, called Project Corona. The third will be another portfolio of Madrid assets, called Abacus (see p13).

CBRE is marketing NAMA’s second non-performing loan portfolio, the €240m Project Club, comprising 10 loans to Irish investor Eamonn Duignan.

The assets include a mix of income-producing properties and development sites, mainly retail, in Dublin’s suburbs.

Jones Lang LaSalle is selling Ulysses, the first large asset portfolio from RBS’s Irish arm, Ulster Bank, which comprises 25 mainly Dublin offices packaged at a big discount to the outstanding loans.

Finally, Ireland’s winding-up bad bank, IBRC, is expected to launch the sale of Project Rock, €7.8bn of loans mainly on UK property, later this month.