Goldman Sachs, CarVal Investors and Bank of Ireland have shared the spoils of Lloyds Banking Group’s final Irish commercial property loan portfolio, paying £827m (€1.18bn) for Project Poseidon, virtually completing the bank’s withdrawal from Irish commercial property lending.
Lloyds said in a statement that the gross assets sold to the Goldman and CarVal joint venture was worth £2.6bn (€3.7bn). Of these gross assets, £2.3bn, or 88%, were impaired.
Part of the trade includes a €200m performing commercial loan pool acquired by Bank of Ireland, comprising over 650 customers in the SME and CRE sectors.
Underbidders included Cerberus Capital Management and a joint bid by Deutsche Bank and Apollo Global Management, which were both winners in the sale of RBS’ Project Finn trade which was announced last week.
In a statement, Mark Cunningham, director of Bank of Ireland Business Banking said: “Bank of Ireland is pleased to have been able to avail of this opportunity to demonstrate our ongoing focus on further growing and developing our strong position in serving the business banking sector in Ireland.
“We look forward to welcoming these new customers to Bank of Ireland and working with them as they seek to develop and grow their own businesses and enterprises.”
Project Poisedon was comprised of around 5,000 loans from circe 3,500 borrowers, with 80% secured by Irish assets; 18% in Northern Ireland and the balance in the UK and Prague.
Assets in Project Poseidon included the Lyrath Estate Hotel in Kilkenny and the Regency Hotel in Drumcondra in Dublin.
In the year to 31 December 2014 the Project Poisedon non-performing loan portfolio generated pre tax losses of c.£130m, Lloyds added in the statement.
Following this transaction, which is expected to complete in the fourth quarter, Lloyds will have minimal remaining exposure to commercial assets in Ireland of less than £30m.
Deloitte sold Project Poseidon on behalf of Lloyds.
Next up is NAMA’s €7.2bn Project Arrow. First round indicative bids have been called for mid-August. Please see here for CoStar News’ previous report on Project Arrow.