NatWest sells £400m distressed retail loan portfolio

NatWest has sold a portfolio of loans made against UK shopping centres. The bank has exchanged on a deal to offload its Project Mercatus portfolio, which comprises debt of £400m against 15 institutionally owned shopping centres, to Attestor Capital, Octane Capital Partners and asset manager Ellandi. The loans are against assets including Cribbs Causeway in Bristol, Manchester Arndale and Leicester’s Highcross Shopping Centre. NatWest will redeploy the sale proceeds into its lending to UK businesses. The bank’s head of real estate, Phil Hooper, said: “The shopping centre sector has been under pressure for a number of years, and this has been greatly exacerbated by the Covid-19 pandemic. “While we have looked to support all our customers through the market disruption caused by Covid-19, in some cases a sale provides the platform for the most sustainable long-term solution. Through this trade we have looked to engage with investors who will continue to work with the customers on a medium- to long-term basis, and we will reinvest the funds received to further support the UK recovery.” NatWest was advised by PwC, its own NatWest Markets division and law firm Ashurst. To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews Photo © M&G Real Estate