Offers due by late March for loan book of failed Victorian mortgage lender Banksia
Bids for a portfolio of about 560 residential, development, industrial and rural mortgages from the failed rural lender Banksia are due later this month.
Bidders for the estimated $200 million portfolio are reported to include Bendigo Bank, Deutsche Bank, Goldman Sachs and Macquarie Group, the Australian Financial Review noted.
The $650 million collapse of Banksia prompted the Australian Securities and Investments Commission (ASIC) last month to release new guidelines.
The $4 billion debenture sector must now have a minimum capital requirement of 8% for certain debenture issuers that accept retail investments.
In February Property Observer reported the receivers of the failed Victorian debenture issuer and mortgage lender Banksia expect to make a “significant” second payment of between and 20 and 35 cents in the dollar to investors by June 30 if it can successfully realise a portfolio of 565 loans.
In addition, the receivers will also seek to sell freehold property owned by Banksia to raise additional funds to repay debenture holders.
A first distribution payment of 20 cents in the dollar was paid to investors on December 7 out of cash holdings, the first part of an estimated total repayment to debenture holders of between 50 and 65 cents in the dollar.
Banksia operated from 10 branches across Victoria and NSW with its head office in Kyabram.
The loans have a face value of $270 million and represent the best performing loans out of a total portfolio of around 1,000 loans, which have a total face value of $537 million.
A return of between 55 to 70 cents is expected for investors in a smaller Banksia-managed fund, Cherry Fund Limited, also in the hands of the receivers.Banksia collapsed in October putting $660 million of small investor debenture funds at risk.