Monday 22 December 2014

€7,000,000,000 – huge sale of Anglo’s UK loan book

US investment fund Lone Star will buy more than 1,300 loans and 1,500 assets

Published 26/02/2014 | 10:58

US investment fund Lone Star Fund has bought almost all former Anglo Irish Bank’s €7bn UK loan book, in the biggest deal since the bank went into liquidation.

Lone Star will buy about 85pc of two former Anglo Irish portfolios in the UK, called Project Rock and Project Salt, from the liquidators. Around three quarters of the offices being sold are in UK and the rest is in Germany, Northern Ireland, Sweden, Spain and Hungary.

The deal sees US based Lone Star bying over 1,300 loans and over 1,500 assets.

While the sale of the land and offices in the UK and Germany had been widely expected, observers are surprised that a single investment fund has pumped so much money into a single transaction.

Most analysts believed that several investors wouyld buy individual property portfolios. Much of the loans and property consists of leisure centres and mixed use offices and residential developments that were financed by the former Anglo Irish Bank’s London branch during the boom.

Liquidators of IBRC split the former bank into four main chunks of loans and have been auctioning them over the past six months.

Final bids for 12,700 former Irish Nationwide Mortgages are due on March 14, remaining bidders for the mortgages this week agreed to stick to consumer protection rules in the event they win the loans.

Former Anglo Irish Bank property loans, mainly secured on assets here have been bundled into “Project Stone,” with a face value of €9.3bn and bidding for that is due to end on March 21.

Bids for the smaller Project Pebble were received on February 21, and are currently being evaluated.

By Thomas Molloy

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