FINANCE: JP Morgan and Lone Star have been selected to buy Commerzbank’s Spanish commercial property loan book and lending platform.
The partners beat three underbidders to win the €4.4bn former Eurohypo book, codenamed Project Octopus.
The other shortlisted parties included a joint venture between Blackstone and Deutsche Bank, Cerberus Capital Management and Apollo Global Management with Santander.
Project Octopus comprises two similarly sized pools split between performing and sub or non-performing pools.
It is understood that JP Morgan will manage the €2.2bn of performing loans, while Lone Star will take on the €2.2bn of sub and non-performing pool.
Separately, RBS is in the process of dividing up its €715 Project Button portfolio of Ulster Bank loans.
The bank is understood to have selected Davidson Kempner Capital Management to buy two tranches of the loans.
The US hedge fund manager is frontrunner to take over €370m of loans owned by Dublin-based Cosgrave Property Group – the largest tranche of the book.
Eastdil Secured is advising on Project Button.
All parties declined to comment.
