Business Irish

Tuesday 16 January 2018

Big US banks seeking Anglo loans


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.

Irish Independent

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