LCM acquires €113m mortgage loan book – exclusive

The real estate loan book covers properties in Germany and is a mixture of both performing and non-performing assets.

UK-based credit investment firm LCM Partners has closed the purchase of a €113 million real estate loan book through a secondary transaction.

The identity of the seller has not been disclosed, but it has been confirmed the portfolio is a mixture of performing and non-performing mortgages spread across a number of regions across Germany secured on office, retail outlet and multifamily housing assets.

A wider pool of commercial and real estate loans were originally acquired by the unidentified seller from German commercial banks in 2015.

Link Financial, a firm in partnership with LCM, will service the loans from its Frankfurt office.

Adrian Cloake, chief investment officer at LCM, said: “This transaction shows how LCM can use its specific credit expertise to collaborate with funds or originators whose preference lies in larger-ticket real estate exposure and who can gain by selling down the more granular parts of their book.

“Through our local Link servicing platforms, we can often find a greater value in the higher volume, lower balance segments which require a more intensive, longer-term strategy to resolve,” he added.

Towards the end of last year, LCM closed its third credit opportunities strategy after raising more than €2 billion from institutional investors.

The strategy is a mixture of comingled funds and managed accounts, attracting a notable $350 million investment from the Arizona State Retirement System, as well as a $150 million commitment from the Florida State Board of Administration.