Oaktree Capital Management LLC, the world's largest distressed debt investor, has purchased Countryside Properties Plc through debt provided by former owner Lloyds Banking Group. The total loans of the UK homebuilder amounted to GBP 165 million, consisting of a five year loan facility for GBP125 million and a GBP 40 million working capital facility.

Lloyds of London purchased Countryside as part of a refinancing deal from its parent firm Copthorn Holdings Ltd. From there, Countryside obtained a loan facility worth GBP363 million for three years with Lloyds.

As part of the deal, Oaktree Capital will retain a majority stake while the family of Countryside founder Alan Cherry would also have holdings in the company. There will be 'significant capital injection' designed to reduce the debt and would be completed in the next few weeks.

For long range plans, Oaktree plans to raise financing between Eur250 million to Eur500 million to lend to European companies.