Friday 9 December 2016

Deutsche Bank and Apollo to buy Ulster loans

Published 24/07/2015 | 02:30

RBS boss Ross McEwan
RBS boss Ross McEwan

Deutsche Bank and Apollo Global Management have teamed up to win the race to buy a tranche of Irish property loans from Royal Bank of Scotland in a deal worth an estimated £400m (€563m).

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The portfolio, which was marketed as Project Finn, was made up of mostly non-performing loans tied to property in Northern Ireland.

The loans, which are a mix of commercial property and buy-to-let residential, were originally made by RBS-owned Ulster Bank. Separately, the Bain-capital affiliate Sankaty Advisors is said to have completed a deal to pay £120m for the remaining tranche of the Project Finn portfolio.

The loans had a par, or face, value in the region of £300m. The portfolio had three tranches and a total par value of around £2.5bn, implying the bank has taken a writedown of as much as 70pc on the value of the loans.

Project Finn was the last major portfolio of Irish-related loans to be sold off by RBS. The bank, which is led by Ross McEwan, had previously shovelled most of its Irish related loans it wanted to sell into a portfolio known as Project Aran.

Aran was originally planned to include loans worth a nominal £1.7bn but was increased to £6bn before it was finally sold off.

The bank has also sold off Project Achill, a portfolio of loans with a par value of around £1.2bn.

Irish Independent

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