US-based investor Apollo and German asset manager Publity have emerged as the buyers of the German office assets forming the collateral of the Bridge loan in the legacy Lehman Brothers Windermere X securitisation.

US-based investor Apollo and German asset manager Publity have emerged as the buyers of the German office assets forming the collateral of the Bridge loan in the legacy Lehman Brothers Windermere X securitisation.

Private equity Group Apollo is believed to have acquired five of the six buildings in a share deal worth €270 mln, while Publity acquired the last remaining asset in a direct transaction worth €60 mln.

Hatfield Philips International (HPI), which was appointed special servicer to the portfolio, said 'the pricing achieved was greater than the latest public valuation the proceeds from the disposal'. 'The proceeds are expected to fully cover the outstanding principal and interest on the senior loan and and partially repay the amount outstanding on the Junior Loan,' the company added.

The 190,000 m2 portfolio consists of six office buildings producing €28 mln in gross rents a year. They include the 44,300 m2 Galluspark in Frankfurt, entirely leased to Deutsche Bahn; the 48,100 m2 Alt Moabit 91 in Berlin, the 29,800 m2 Abraham-Lincoln-Park 1 office in Wiesbaden as well as assets in Düsseldorf and Sulzbach. Publity has acquired a 40,000 m2 building in Eschborn near Frankfurt.

HPI was appointed special servicer on the loan after the borrowing entities, a unit of Fortress' Eurocastle arm, failed to repay it in full on its 15 January 2014 maturity date. Shortly thereafter, HPI took control of the borrowing entities through enforcement on Luxembourg share pledges and appointed Valad as new asset manager to enhance the value of the portfolio.

NAI Apollo and PricewaterhouseCoopers were hired to market the portfolio to potential buyers.

Paul Hastings acted as the legal and Arcadis as the technical advisor on the sell side of the transaction.