AIB
AIB is continuing to dispose of its non-core assets with reports indicating that US investment bank, Morgan Stanley, has been appointed to manage the sale of a commercial property portfolio valued in the region of €675 million. It is understood that the portfolio of loans is secured on Irish commercial property including Dublin office space. It is not known what discount factor may be applied to the loans.
Further reports suggest that the bank is also considering a sale of its UK and European commercial property portfolios. As part of its deleveraging plan, AIB must remove €20.5 billion in non-core assets from its balance sheet.
In related news, it is reported that AIB has now received regulatory approval to conclude the sale of its investment management business, AIB Asset Management Holdings (Ireland) Ltd to Prescient Holdings. As previously reported the business, which as at September 2011 had approximately €8.5 billion of assets under management, is believed to have been sold for approximately €25 – €30 million. It is to be renamed Prescient Investment Managers (Ireland) Ltd once the sale has fully concluded.
Bank of Ireland
It is reported that Bank of Ireland has agreed to dispose of an additional €900 million in non-core assets to ITL Limited, which is a subsidiary of the Coventry Building Society. It is believed that the assets include €600 million in residential mortgage backed loans.
Irish Bank Resolution Corporation (IBRC)
It is reported that Irish Bank Resolution Corporation (formerly Anglo Irish Bank) is not proceeding with a proposed sale of its wealth management assets to Dublin based investment firm Key Capital. It is understood that the wealth management division will now, in line with the rest of the bank, be wound down over a five year period. It is estimated that about €2.5 billion of IBRC’s loans relate to investment products, including property funds, provided by the wealth management division.
Lloyds & Bank of Scotland Ireland
Lloyds Bank is continuing to wind down the €30 billion loan book of Bank of Scotland (Ireland) with reports indicating that it is to dispose of almost €400 million in Irish property loans. It is believed that bids for the loans have already been received. Whilst the sale price is unknown it is thought that the portfolio could achieve about a quarter of its value. US hedge funds Lone Star and Och Ziff are understood to be amongst the bidders. Lone Star acquired part of IBRC’s US loan book last year.
In related news it is understood that BDL, a hotel management company, has been appointed by Lloyds as its preferred manager for any hotels it places in receivership. Approximately €1 billion of the loans advanced by Bank of Scotland (Ireland) are reportedly secured on hotels.
