National Australia Bank has added a £700m UK portfolio to the European loan sales market ahead of an expected summer lull.
The bank, which owns Yorkshire and Clydesdale banks, has appointed Morgan Stanley to manage the process, known as Project Chestnut.
The portfolio is split into two tranches: a £200m residential pool and a circa £500m pool of commercial loans.
It is understood that the commercial book comprises the banks’ larger exposures, so is less granular with fewer borrower connections than many of the NPL books that have already been traded.
The sale marks the acceleration of NAB’s exit from the UK market after it put its book into rundown in 2012.
At the end of the six months to 31 March, its UK commercial real estate lending book stood
at £3.3bn.
Morgan Stanley will consider bids on the individual tranches or the whole. First-round offers are due by 18 June.
It is said to be widely marketing the portfolio to equity-laden private equity firms desperate for stock as new sales processes begin to slow before the summer.
The Bank of Cyprus is currently in the market with its entire £350m UK real estate portfolio of loans, the majority of which are to individual wealthy residential owners.
Lloyds Banking Group is continuing with the sale of its Project Avon NPL after Kennedy Wilson last week bought a £93.5m tranche of six loans secured against five fire control centres in England.
Cerberus Capital Management, Kennedy Wilson Oaktree and Capital Management are expected to bid for the £533.4m remainder by 2 June in the process being run by Deloitte.
All parties declined to comment.
National Australia Bank has added a £700m UK portfolio to the European loan sales market ahead of an expected summer lull.The bank, which owns Yorkshire and Clydesdale banks, has appointed Morgan Stanley to manage the process, known as Project Chestnut.The portfolio is split into two tranches: a £200m residential pool and a circa £500m pool of commercial loans.It is understood that the commercial book comprises the banks’ larger exposures, so is less granular with fewer borrower connections than many of the NPL books that have already been traded.The sale marks the acceleration of NAB’s exit from the UK market after it put its book into rundown in 2012. At the end of the six months to 31 March, its UK commercial real estate lending book stood at £3.3bn.Morgan Stanley will consider bids on the individual tranches or the whole. First-round offers are due by 18 June.It is said to be widely marketing the portfolio to equity-laden private equity firms desperate for stock as new sales processes begin to slow before the summer.The Bank of Cyprus is currently in the market with its entire £350m UK real estate portfolio of loans, the majority of which are to individual wealthy residential owners.Lloyds Banking Group is continuing with the sale of its Project Avon NPL after Kennedy Wilson last week bought a £93.5m tranche of six loans secured against five fire control centres in England.Cerberus Capital Management, Kennedy Wilson Oaktree and Capital Management are expected to bid for the £533.4m remainder by 2 June in the process being run by Deloitte.All parties declined to comment. bridget.oconnell@estatesgazette.com
