* Commercial real estate loans sold by failed Irish bank
* JPMorgan, Lone Star to buy other loans
Nov 2 Wells Fargo & Co said on
Wednesday that it was under contract to buy $3.3 billion in
loans, backed by U.S. commercial real estate, from Irish Bank
Resolution Corp, formerly known as Anglo Irish Bank.
The San Francisco lender said it closed on the purchase of
25 loans with a face value of $1.5 billion on Oct. 25. Wells
said it expects to acquire the remaining loans in the fourth
Reuters reported in August that after rounds of competitive
bids, a group comprising Wells Fargo, JPMorgan Chase & Co and Lone Star Funds had been the winners of a pool of
U.S. commercial real estate loans with a face value of about
about $9.5 billion that were sold by Anglo Irish Bank.
To attract buyers, the portfolio was broken into eight
separate pools according to the performance of the loans and
length to maturity.
A source familiar with the sale in August said that the
total price paid for all the loans was between $7 billion and
JPMorgan won the first tranche, which comprised loans with
a balance of about $1 billion to $1.5 billion, the source
Global distressed debt and equity investor Lone Star won
the remaining five pools of sub-performing and non-performing
loans. The five pools have a face value of about $5 billion.
Wells Fargo has been actively buying distressed U.S. loans,
backed by U.S. commercial real estate, from Irish banks. Before
winning part of the Anglo Irish portfolio, it purchased a $1.4
billion performing loan portfolio from the failed Bank of
Ireland for about par.
Last week, another source said that Wells had teamed up
with Blackstone Group LP to buy pool of loans with a
face value of about $600 million from Allied Irish Banks Plc .