JPMorgan, Lone Star Buying Dutch Bad Bank for $989 Million

A venture between private-equity firm Lone Star Funds and JPMorgan Chase & Co. agreed to buy Propertize BV, the Dutch bad bank, for about 895 million euros ($989 million).

The transaction is expected to close in September 2016, NLFI, which manages nationalized financial companies on behalf of the Dutch government, said in a statement on Tuesday. JPMorgan and Lone Star competed with bidders including a venture between Goldman Sachs Group Inc. and Cerberus Capital Management LP for the firm, Bloomberg News reported on June 16.

Propertize was given as long as a decade to dispose of soured real estate assets after SNS Reaal NV was nationalized in 2013. The Dutch government decided to privatize Propertize and sought expressions of interest from buyers last year, according to an official notice. The fund held 3.44 billion euros of assets at the end of December, according to a filing.

More than 40 buyers expressed interest in the firm and two bidders eventually submitted binding offers, NLFI wrote in a letter to Dutch finance minster Jeroen Dijsselbloem on June 23. About 22.5 million euros of the purchase price is conditional, according to the statement.

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