Saturday 20 January 2018

Canadian firm leads race for Danske loans

CAPREIT are the top bidder for Danske’s residential loan portfolio
CAPREIT are the top bidder for Danske’s residential loan portfolio
Peter Flanagan

Peter Flanagan

CANADA'S biggest residential property investor is believed to be the lead bidder for Danske Bank's residential property portfolio, Project Circle.

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) is thought to be the leader of five bidders after round two of bidding concluded.

CAPREIT's position at the head of the list was first reported by CoStar.

The firm is thought to be one of five bidders, including Deutsche Bank and US private equity firm Oaktree Capital Management.

If any deal is concluded it is expected to be in or around the €80m Danske is seeking for the portfolio, which is made up of around 600 loans tied to home mortgages and development land.

Most of those assets are in and around Dublin, with smaller numbers coming from the likes of Galway, Limerick and Cork.

CAPREIT last week set up the third REIT in Ireland after Green Properties Green REIT and WMK Nowlan's Hibernia REIT.

Irish Residential Properties REIT plans to raise about €200m to invest in property here. The REIT is expected to formally list this week.

Danske has been steadily selling down its Irish portfolio for some time, and its non-core commercial property loans are now managed by Australian firm Pepper Asset Services.

The firm formally put Project Circle on the market last month.

Sunday Indo Business

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