Big US banks seeking Anglo loans
Published 26/08/2011 | 05:00
JPMorgan Chase and Wells Fargo are among banks that made final bids to buy portions of Anglo Irish Bank's $9.65bn of US property loans.
The lenders are looking to acquire pieces of the $4.52bn of performing loans the Dublin-based bank is shedding. Investor groups led by private-equity firms Blackstone Group, working with Deutsche Bank, and Lone Star Funds also submitted offers for parts of the portfolio, which include $5.13bn of subperforming and non-performing debt.
"Banks like Wells and JPMorgan can afford to pay more than a non-bank for the performing loans," said Ben Thypin, director of market analysis for Real Capital Analytics, a property- research firm in New York.
"Private-equity firms like Blackstone and Lone Star can bid aggressively on the nonperforming pieces because they have a large workout infrastructure in place."
Anglo Irish is seeking to unload loans after being nationalised in January 2009 amid a surge in souring debt. The offering includes loans backed buildings from Manhattan to Beverly Hills, California. The competition underscores the appetite for real estate loans.