The shortlists for two Allied Irish Bank loan portfolio sales have been finalised.
Cerberus Capital Management, Kennedy Wilson working with its partner Deutsche Bank, Forum Partners and Apollo Global Management are understood to be the four parties selected for AIB’s £383m Project Pivot UK loan book.
A number of high-profile bidders including Lone Star, Starwood and Goldman Sachs did not make the shortlist for second-round bids, which will be due in mid-September.
Project Pivot comprises performing loans secured against 247 UK properties from around 40 separate borrowers. Bids are expected to come in at a discount of between 50%-60% off the face value.
The second shortlist is for AIB’s €675m, predominantly Irish, loan book, codenamed Project Kildare.
Lone Star, a joint bid by Kennedy Wilson and Varde Partners and Goldman Sachs Special Situations Fund make up the three-strong shortlist.
Some 80% of the commercial properties linked to the loan book are located in Ireland with the largest concentration located in Dublin.
Project Kildare comprises performing and non-performing loans with some past maturity and many of the Irish loans in some form of default, and bids are expected to come in at around 70% of face value.
Citigroup is advising on Project Pivot; Morgan Stanley is managing the Project Kildare sales process.
Bridget.O’Connell@estatesgazette.com
