Wednesday 13 December 2017

Cerberus buys €2.5bn book of problem loans off Ulster Bank

Ulster Bank
Ulster Bank

Donal O’Donovan

Ulster Bank has sold its €2.5bn Project Oyster book of problem loans to Cerberus – the buyer of Nama's controversial Northern Ireland portfolio – and Ptsb's UK commercial mortgages.

The loans sold by Ulster Bank include more than 900 family home loans.

In all the sale of is made up of distressed business loans (65 per cenct), buy-to-let mortgages (23 per cent) and owner-occupier mortgages (12pc).

Its thought they sold for a steep discount, but the sale was aimed at substantially clearing out all of Ulster Bank’s remaining toxic property linked loans on both sides of the border.

Ulster Bank has confirmed the sale, but not the price.

"Ulster Bank has confirmed the completion of a sale of a significantly impaired loan portfolio enabling the bank to strengthen its balance sheet for the benefit of its customers and provide much needed competition in the Irish banking market.

"The loans involved are all in Ulster Bank’s Problem Debt Management unit and have been in arrears or under specialist management for a significant period of time."

The bank said it will now begin contacting customers whose loans have been sold.

The bank said all of the loans involved in the sale are in steep arrears. All of the home loans affected are involved in legal processes to have the home repossessed, the bank said.

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