Irish property group Cairn Homes and US private equity group Lone Star acquire Project Clear, a portfolio of Ulster Bank loans, for €503 million.
Cairn said it would pay €378 million for its 75 per cent share of the portfolio, which includes loans with a par value of around €2 billion attached to 1,694 acres, including 31 residential development sites. More than 90 per cent of the land is located in Dublin and the surrounding commuter belt and represents around 20 per cent of the available residentially-zoned land in the greater Dublin area, the homebuilding company said.
Cairn’s share in the portfolio is said to be in the region of 75pc and it gives the company the ability to build in excess of 14,000 new homes with a development value of over €2bn.
“We are delighted to have entered into an agreement with Ulster Bank for the Project Clear loan portfolio, one of our key strategic targets.”said Michael Stanley,Cairn chief executive.
The deal is expected to be completed before the end of the year.