Cerberus Capital Management, Lone Star, Goldman Sachs, Deutsche Bank and Oaktree Capital Management are all competing for the €1.5bn (£1.3bn) Project Hampton loan portfolio.
First-round bids for Lloyds Banking Group’s first multi-jurisdictional commercial property loan portfolio were due on 3 October as Estates Gazette went to press.
The 20-strong pool does not include any loans made against UK properties but instead comprises debt on assets in Germany, Sweden, France and Spain.
Around 60% of the portfolio is German loans, which makes Lone Star and Cerberus strong contenders as both firms have a strong presence in the German market.
Last year opportunity fund manager Lone Star bought German state property company TLG for €1.2bn, following a 2011 deal for a €960m portfolio of former Lehman Brothers bonds and loans from the Bundesbank.
US private equity firm ?Cerberus was last week selected as the winner of Lloyds’ ?non-performing loan sale, dubbed Project Indie, with a €312m cash bid. The portfolio of loans is secured against 47 sheds and offices in Germany.
Project Hampton is comprised of just over 20 separate loans, with an unpaid outstanding loan balance of €1.5bn, and an interest rate swap liability of between €40m and €50m.
The loan pool is broadly 50:50 split between performing and non-performing, although all loans have passed maturity.
Deloitte is advising on the sales process.
Bridget.O’Connell@estatesgazette.com
