Lone Star completed its purchase of the £900m Project Royal loan book from Lloyds Banking Group ahead of its Christmas deadline.
The US private equity firm bought the book of performing and non-performing loans from an affiliate of Lone Star Real Estate Fund II, beating rivals Colony Capital and Cerberus.
Citigroup and Royal Bank of Canada will provide senior financing for the deal to buy the portfolio of more than 30 loans. Lloyds will not provide vendor finance, and has done a “risk-transfer” of the loans as part of the deal.
bridget.o’connell@estatesgazette.com
