commercial property lambert smith hampton

News - 23/05/2013

LSH advises Cerberus on £375m debt portfolio acquisition

Lambert Smith Hampton (LSH) has successfully advised Cerberus Capital Management on its £375m acquisition of the Lloyds Banking Group’s Project Thames loan portfolio.

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Ezra Nahome, CEO at LSH, said: “The portfolio contains a number of high quality assets. We will be working with the Cerberus team on a number of properties to ensure we maximise value.”

The portfolio of 167 assets, which is spread across the UK, includes a vast array of different asset classes including offices, industrial, student accommodation, land, retail and residential. Prominent assets include the Brewery in Chiswell Street in the City of London, four Aviva occupied offices - Wellington Row and 2 Rougier Street in York, and Sentinel House and Horizon Business Centres in Norwich; while the Fusion 2 building on the Solent Business Park in Fareham is also in the portfolio.

Asset-by-asset strategic review and detailed due diligence

Our team, drawn from across our national network, quickly mobilised and provided strategic advice and due diligence, conducting a detailed review of each asset and its local market context. We used our thorough understanding of the local markets to assess the value of each asset now and in the future, using our agency and lease advisory teams’ knowledge of up-and-coming lease events and tenants’ intentions. This allowed Cerberus to quickly gain an understanding of risk and value options on the key assets.

Strong private equity interest in debt portfolios continues

Appetite for non-performing loan portfolios is fierce - Cerberus beat off competition from the like of Apollo Global Management and a joint bid from Kennedy Wilson and Deutsche Bank. The deal concludes next week.

Ezra added: “There is £212 billion of debt secured against UK commercial property, 70% of which is due to mature before the end of 2016.  The sale of property debt portfolios by the major senior lenders is becoming the fastest growing area of capital markets.  Our team has advised on over £3 billion of distressed debt portfolio linked to thousands of individual assets and with our national platform we are ideally placed to benefit from this growing market.” 

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