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Geoff Percival
The US private equity firm Lone Star won the race to acquire TSB's $ 2.3 billion Project Glas unproductive real estate loan portfolio.
Through its retail credit subsidiary Start Mortgages, Lone Star will pay a net amount of 1.3 billion euros for the portfolio, which generated an operating profit of about 8 million euros last year.
Project Glas contains unproductive loans related to approximately 10,700 properties – including 3,300 properties for rent and 7,400 private properties. houses. The permanent TSB stated that 2,500 loans were clbadified as "non-cooperating" and 3,850 refused treatment. The average loan payment term is three and a half years, the average value of arrears amounting to 28,800 euros [19659004] The TSB permanent stated that it would use the proceeds of the cash sale to general corporate purposes.
The lender pushed back the bid deadline at the end of July after troubled debt company Cerberus quit the race. In May, Cerberus acquired from AIB a portfolio of bad business loans of 1.1 billion euros. In addition to Lone Star, Goldman Sachs and Oaktree Capital Management were tied to the permanent sale of TSB.
Each was also linked to the bidding process for the Ulster Bank auction of 1.6 billion euros of distressed mortgages. On Friday, TSB Permanent Director General Jeremy Masding said the bank remains committed to reducing its non-performing single-digit loan ratio in the short term.
"Reducing nonperforming loans is a necessary step for us to rebuild the PTSB as a viable and competitive lender," said Mr. Masding
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