US private equity firm Lone Star has closed the acquisition of Aviva Investors’ Project Churchill UK real estate loan portfolio, secured by more than 1,000 commercial properties nationwide.
US private equity firm Lone Star has closed the acquisition of Aviva Investors’ Project Churchill UK real estate loan portfolio, secured by more than 1,000 commercial properties nationwide.
Dallas, Texas-based Lone Star is understood to be paying £2.3 bn (€3 bn) for the package, which has a total unpaid principal balance of £2.7 bn and a valuation of £2.4 bn.
According to market sources, Lone Star emerged ahead of two other bidders, Apollo and Cerberus, in the bid to acquire the portfolio which is secured against 1,020 assets spanning distribution warehouses, care homes, department stores, multi-let retail, office and industrial properties, shopping centres, as well as central London and regional office centres.
The deal is believed to be the largest non-performing loan trade in Europe so far this year.
According to a press report by website Costar Finance, JP Morgan is participating in the transaction with the purchase of a £200 mln portion of performing Churchill loans from Lone Star.
Citi and Morgan Stanley have jointly provided an equal share of the loan-on-loan financing.
A spokesperson for Aviva Investors declined to comment further. Lone Star did not respond to an email request for comment.
Deloitte advised Aviva on the sale.
