Tuesday 19 September 2017

Deutsche Bank and Apollo to buy Ulster loans

RBS boss Ross McEwan
RBS boss Ross McEwan
Peter Flanagan

Peter Flanagan

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).

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The loans, which are a mix of commercial property and buy-to-let residential, were originally made by RBS-owned Ulster Bank.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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