Irish bank Permanent TSB is selling €1.5 billion of non-core, largely commercial real estate loans, to Havbell, a new vehicle funded by Deutsche Bank and funds affiliated with Apollo Global Management, sister publication Real Estate Capital reported today.
They are paying approximately €800 million; equivalent to the book value of the loans at 31 December 2014, and the sale is expected to close before the end of June. The assets backing the loans are spread across Ireland.
The sale is part of a €5 billion disposal of non-core assets. Cerebus is buying the bank's UK subsidiary, Capital Home Loans, including its servicing platform and the £2 billion mortgage book, which is mostly performing, well-collateralized UK buy-to-let loans, plus two securitization vehicles Auburn 4 and 5, which have £500 million of loans.
Cerebus is paying £1.8 billion for the package, against a book value of £2 billion at 31 December 2014.
The bank, which was nationalised during the Ireland's financial crisis, failed the European banking stress tests last year, registering a capital shortfall of €855 million.