KPMG is preparing to sell a $1.26bn (£875m) portfolio of collapsed investment bank Lehman Brothers’ Asian property assets.

The provisional liquidator of Lehman Brothers Hong Kong said today it had completed creditors’ meetings with all eight of the bank’s subsidiaries and was now assessing market appetite for its assets.

Most of the property assets are based in China and Thailand.

Mike Lindsay, KPMG’s head of global real estate, has been appointed to asset manage and market the portfolio.

He said: ‘After five months of collecting and analyzing all the data it is fair to say that the countries in which the assets are held, the levels of loans advanced relative to value and actual or prospective cash flow and the specific characteristics of the underlying security have presented the provisional liquidators with significant challenges.’

The assets are being sold out of subsidiary Lehman Brothers Commercial Corporation Asia, the second largest Lehman entity in Hong Kong.