Lehman Brothers’ $1.26bn Asian real estate portfolio attracts early interest

More than 250 expressions of interest from parties including private equity real estate firms have been received by the collapsed bank’s liquidators for its assts in Asia.

The unwinding of collapsed bank Lehman Brothers in Asia has moved a step further after liquidator KPMG said it was preparing the sale of $1.26 billion of its real estate assets and that it already had more than 250 expressions of interest for them.

In a statement KPMG said it had completed a five-month review of Lehman Brothers Hong Kong, it had completed creditor meetings with all eight of its subsidiaries and was now in the market assessing investor appetite. Much of the Asian portfolio is spread across Thailand and China and was controlled by Lehman Brothers Commercial Corporation Asia, the second largest Lehman entity in Hong Kong.

Michael Lindsay, global head of real estate for KPMG Corporate Finance, said: “After five months of collecting and analysing all the data it is fair to say that the countries in which the assets are held, the levels of loans advanced relative to value and actual or prospective cash flow and the specific characteristics of the underlying security have presented the provisional liquidators (KPMG) with significant challenges.” 

The news comes in the same week that it was revealed a management group from Lehman Brothers Venture Partners would spin out to become Tenaya Capital. The firm will have $750m in capital and 45 portfolio companies and retain all the third-party limited partners from Lehman’s venture funds. The group will be backed by HarbourVest, the fund of funds manager.