Real estate assets valued in the region of €2 bn, including three trophy offices in London, have been put on the market by Germany's HSH Nordbank as part of a toxic loan sale by its two main shareholders.
According to UK newspaper The Times, the state-owned German bank called for bids on a €3.2 bn portfolio last week, which includes three UK office assets carrying a collective value of around €1 bn.
It is estimated that the real estate collateral in the portfolio amounts to around €2 bn of assets, located in the UK, Germany and across other European countries.
A source said that the trophy assets in the loan portfolio included Cisco Systems’ Bedfont Lakes headquarters near Heathrow airport (pictured), the City base of law firm CMS at Cannon Place and the Man Group hedge fund’s offices at Riverbank House.
A buyer wanting to take ownership would have to purchase the debt and enforce to recover the assets.
Newsagency Reuters reported that Deutsche Bank, Credit Suisse and Citigroup were among 20 bidders in talks for the portfolio, codenamed project Leo, alongside a number of private equity players.
The portfolio also includes at least €500 mln of non-performing loans related to HSH's shipping finance business, as well as aviation and energy debt, according to the same source.
