Allied Irish unloads $1 billion U.S. portfolio to Blackstone, Wells Fargo

New York /
May.May 25, 2011 12:10 PM

Allied Irish Banks has struck a deal to sell a portfolio worth around $1 billion in U.S. commercial mortgages to Blackstone Group and Wells Fargo & Co., in a move to take advantage of a U.S. commercial property recovery and reduce their holdings of troubled loans. According to the Wall Street Journal, the portfolio represents more than 50 percent of the bank’s U.S. real estate holdings and includes pieces of loans in trophy buildings such as the MetLife building at 200 Park Avenue, between 44th and 45th streets, and the Grand Del Mar resort in San Diego.

The deal was for roughly 7 percent to 15 percent discount off the face value of the loans. Blackstone is paying mid-$80s in on the dollar for around half of the portfolio and Wells Fargo is paying in the low-$90s for the other half. The assets going to Wells Fargo are less distressed, according to the Journal. Allied Irish has negotiated a higher price than other recent deals as competition for distressed real estate assets skyrockets.

The deal comes less than a month after Bank of Ireland, another troubled Irish lender, announced that it was offloading $1.5 billion in U.S. commercial real estate holdings. Anglo Irish Bank Corp. is also being pressured by regulators to get rid of its $10 billion portfolio. [WSJ]


Related Articles

arrow_forward_ios
Main-MainImage_.psd FT-Thumbnail_.psd
Blackstone to net $4B profit in sale of Vegas casino
Blackstone to net $4B profit in sale of Vegas casino
Blackstone Group's Stephen Schwarzman, KKR's Henry Kravis and Apollo's Leon Black (Getty, Facebook, iStock)
Blackstone, Apollo, KKR take market hit on Evergrande tumult
Blackstone, Apollo, KKR take market hit on Evergrande tumult
Wells Fargo CEO Charlie Scharf (Getty, iStock)
Wells Fargo hit with $250M fine, new restrictions over mortgage lending practices
Wells Fargo hit with $250M fine, new restrictions over mortgage lending practices
The Cosmopolitan of Las Vegas at 3708 Las Vegas Blvd S and Blackstone CEO Stephen Schwarzman (Google Maps, Getty)
Blackstone marketing Cosmopolitan Las Vegas for $5B
Blackstone marketing Cosmopolitan Las Vegas for $5B
Blackstone buying WPT Industrial in $3B deal
Blackstone buying WPT Industrial in $3B deal
Blackstone buying WPT Industrial in $3B deal
Blackstone, HPP look to expand studio empire to the UK
Blackstone, HPP look to expand studio empire to the UK
Blackstone, HPP look to expand studio empire to the UK
Wells Fargo, BlackRock join other firms in delaying office returns
Wells Fargo, BlackRock, Amazon join others in delaying office returns
Wells Fargo, BlackRock, Amazon join others in delaying office returns
1301 Sixth Avenue and Paramount Group's Albert Behler (Google Maps, Getty)
Wells, Morgan Stanley to provide Paramount’s $860M refi at 1301 Sixth Avenue
Wells, Morgan Stanley to provide Paramount’s $860M refi at 1301 Sixth Avenue
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...