Cerberus Raises $ 631 Million in German Maritime Loans Hosted at Dublin Company
Cerberus Capital Management, a US buyer of distressed assets in the world, uses a complex network of Irish entities to hold secured loans on billions of euros of foreign assets such as ships and property in Germany, in Spain and Portugal, according to a series of documents filed by companies. in Dublin this week.
Cerberus, which has also bought billions of euros in mortgage loans from Irish banks, also appears to have made the state a mainstay of its European problem bank loan operation in recent years. He has created more than 50 such companies here, according to the documents.
A Cerberus company, Promontoria Big Ben, which is registered in the Dublin offices of a trust company, is used to hold a € 2.7 billion portfolio of maritime loans acquired from Norddeutsche Landesbank Girozentrale, the one of the largest commercial banks in Germany.
Accounts filed this week in Dublin show he raised $ 631 million (€ 545 million) on those loans last year, in addition to $ 1 billion in 2019. He made a net gain on shipping loans last year of $ 221 million, but the Irish company posted a profit of just $ 468,000 and paid tax of $ 156,000. All of its figures are expressed in US dollars.
Another Dublin-based Cerberus company that released its results this week, Promontoria Indian, raised nearly € 46 million last year on a portfolio of distressed property-backed mortgages in Portugal. Promontoria Lezama, registered at the same Dublin fiduciary address as the others, paid 135 million euros for a portfolio of Spanish mortgage loans from the Basque institution Kutxabank. The Dublin Cerberus entity realized a net gain of 25 million euros last year on these loans.
Promontoria La Barrossa owns Spanish real estate assets acquired from Bankia, which was formed by the Spanish government during the crash to absorb failed mortgages. Loans lodged in Ireland now stand at 9.5 million euros, the accounts suggest.
Promontoria Mars, another Dublin entity, made a gain of € 13.3 million last year on another Portuguese loan portfolio acquired from Caixa Geral de Depositos, a public institution and the country’s second largest bank.
Other Dublin-based Cerberus entities that filed results this week shed light on its operations in that state. Promontoria Beech, which owns distressed old AIB mortgages, raised € 203m on those loans last year, realizing a net gain of € 74m on assets.
Promontoria Snow cashed 36.8 million euros on old Bank of Ireland mortgages, realizing a gain of 15 million euros. An additional € 118 million was collected on former Ulster Bank mortgages, now held by Promontoria Scariff of Cerberus.
Many Irish companies are advised by another back office company in the group, Cerberus European Servicing Advisers (Ireland), whose directors include the former chairman of Telecom Éireann, Ron Bolger, senior advisor to Cerberus in Ireland. Its 15 employees shared salaries of 4.9 million euros last year, an average of 326,000 euros each.