Palm Capital acquires £150m Lone Star loan book
Private equity and special situations firm Palm Capital has bought a £150m sub-performing loan book from Lone Star.
Known as Project Falcon, the loan book is secured against a portfolio of 80 UK commercial real estate assets.
Its underlying portfolio comprises 49% high street retail and long-let retail warehouses, 12% leisure, 15% logistics and 21% offices.
Private equity and special situations firm Palm Capital has bought a £150m sub-performing loan book from Lone Star.
Known as Project Falcon, the loan book is secured against a portfolio of 80 UK commercial real estate assets.
Its underlying portfolio comprises 49% high street retail and long-let retail warehouses, 12% leisure, 15% logistics and 21% offices.
It was part of the Project Churchill loan portfolio and has an average maturity of more than eight years. The portfolio is spread across various locations in the main UK markets and the underlying leases have a WALT of 8.5 years.
Palm Capital said Project Falcon offered an “interesting exposure to the regional UK market, which offers a superior risk return profile, a strong income yield and upside potential”.
Reda Khatim, managing director at Palm Capital, said: “This transaction highlights Palm Capital’s strength in capitalising on special situations across the risk spectrum.
“We were particularly attracted to the long duration, largely performing nature of this loan book, which provided a superior risk return exposure and a high degree of protection.
“Furthermore, this transaction also leverages our in-depth historical experience in acquiring distressed situations combined with our strong asset management expertise.”
Savills and Acuitus advised Palm Capital. CBRE acted for Lonestar.
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