Australia’s Pepper Group is taking over administration of a €400m portfolio of distressed buy-to-let mortgages sold by AIB to Goldman Sachs earlier this year.
The deal comes as Pepper’s Irish operations, which employ more than 400 people, received a vote of confidence from private equity giant KKR, which is in the process of buying the group. KKR plans to retain and grow the Irish business, according to reports last week.
The mortgages being transferred to Pepper comprise AIB’s Project Cypress, a portfolio of 1,200 loans sold to Goldman Sachs for about half their face value.
“AIB has contacted impacted borrowers to inform them that their loans are being transferred and to confirm existing legal and regulatory protections remain in place,” said the bank.