US private equity firm Lone Star has reportedly paid nearly £2.25 bn (€3 bn) for 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 reportedly paid nearly £2.25 bn (€3 bn) for Aviva Investors’ Project Churchill UK real estate loan portfolio, secured by more than 1,000 commercial properties nationwide.
According to a news report by Costar Finance, Project Churchill’s total unpaid principal balance is £2.7 bn, while the carrying value is £2.4 bn, reflecting a sub 17% discount to unpaid balance.
Citi and Morgan Stanley will jointly provide an equal share of the loan-on-loan financing. Lone Star is expected to seek in excess of 65% loan-to-cost, implying a debt facility of £1.5 bn or above.
The underlying portfolio comprises 1,020 assets spanning distribution warehouses, care homes, department stores, multi-let retail, office and industrial properties, shopping centres, a Rolls Royce depot as well as central London and regional office centres.
Deloitte advised Aviva on the sale.
