Categorized | Investing

Chase, Wells Fargo, and Lone Star Win Anglo Irish Loans

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After a few days of deliberation, Anglo Irish Bank Corp. has announced the winners of their U.S. commercial real estate loan portfolio. The portfolio was valued between nine and ten billion dollars, and was highly sought after by a number of different banks and private equity shops. A variety of different major U.S. banks and international private equity shops placed bids for pieces of the loan portfolio, with JP Morgan Chase, Wells Fargo, and Lone Star Funds coming away as the winners.

While details about the deal are continue to surface, it appears that both JP Morgan Chase and Wells Fargo were the winners of Anglo Irish’s performing loans. Lone Star Funds secured Anglo Irish’s sub- and nonperforming loans. The loans sold include those for the Apthorp, a major residential building in Manhattan, and the Palmer House Hilton in Chicago.

With the sale of these loans, Anglo Irish has made its departure from the United States commercial property market. While it had once been one of Europe’s biggest investors in the United States, the current economic turmoil both in Ireland, and also in the United States has made it rethink its strategy.

Twenty-four investors placed bids on the portfolio, including Goldman Sachs, and Deutsche Bank. However, it is was JP Morgan Chase that one the first portion of the loans, which included the Palmer House Hilton, with a bid of one and a half billion dollars. Wells Fargo won the second and third portions of the portfolio, which included the Two Rodeo Drive shopping complex in Beverly Hills. Their bid was in excess of three billion dollars. Lastly, Lone Star won the rest of the portfolio, with a bid of five billion dollars.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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