Cerberus Capital Management has won the bidding process to acquire a portfolio of European commercial real estate loans from Lloyds Banking Group for €312 mln in cash.
Cerberus Capital Management has won the bidding process to acquire a portfolio of European commercial real estate loans from Lloyds Banking Group for €312 mln in cash.
The deal reflects a 30% discount to the assets' gross value.
'The transaction is part of the group’s continued non-core asset reduction strategy,' the bank said in a statement. The deal is expected to close in the fourth quarter.
The senior loan package has a gross value of €440 mln (£371 mln) and in the year to 31 December 2012 generated profits of £4 mln.
The debt is understood to be secured by the Valad Europe-managed German Aktiv Property Fund Limited Partnership (GAF), which was part of the DUKE joint venture workout mandate with Lloyds Banking Group.
A Valad spokesperson told PropertyEU: 'Following the announcement made yesterday by Lloyds Banking Group to the London Stock Exchange, Valad Europe is pleased to be appointed by Cerberus to asset manage the German portfolio of 47 industrial and office properties secured by GAF.'
Cerberus is a new investment partner for Valad Europe. We look forward to our work together and to growing income in the GAF portfolio.'
