Lone Star has bought a 50% stake in the €1.8bn Excalibur portfolio from the Bundesbank.
It is understood the US private equity firm is in exclusive talks to buy the remainder of the portfolio of Lehman Brothers’ securitised debt by the end of next month.
It is in talks with Citigroup and the Royal Bank of China to finance the deal, although the level of debt or the discount-to-face-value of the package has not yet been finalised.
The lenders are the same banks that are financing Lone Star’s purchase of the £900m Project Royal loan portfolio from Lloyds Banking Group, which it completed before Christmas.
The Bundesbank took control of a €2.2bn portfolio – which is a commercial real estate collateralised debt obligation – before the collapse of Lehman Brothers in 2008.
The vehicle comprises legacy senior loans, whole loans, mezzanine loans and corporate loans as well as CMBS bonds, B-notes and exposure to other CRE CDOs.
AgFe is advising the Bundesbank on the transaction.
Lone Star declined to comment.
bridget.oconnell@estatesgazette.com
