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npl-reo Market News: Spanish Real Estate Intelligence

Apollo Sells Altamira to DoBank (Fortress) for c. €500M

31 December 2018 - Expansión

Apollo has sold its 85% stake in Altamira Asset Management to doBank, a firm constituted by the US fund Fortress. Market sources state that the operation amounted to around €500 million.

Expansión revealed in October that Apollo had engaged Goldman Sachs to sell the servicer that manages the real estate assets of Santander and Sareb for around €600 million.

Altamira has assets under management amounting to approximately €55 billion and operates in Spain, Portugal, Cyprus and Greece. The company’s estimates indicate that it will obtain revenues of around €255 million in 2018 and an operating profit before amortisation (EBITDA) of €95 million.

Altamira’s main value stems from the long-term contract that it holds with Santander, as well as the management of Sareb’s assets (the latter account for almost 30% of the total value of its assets under management).

At the moment, Sareb is analysing whether or not to renew its contracts with all of the servicers with which it works, but Altamira has been diversifying its client base for months, incorporating domestic and international players alike.

Apollo in Spain

During the last quarter of 2018, Apollo Global Management has exited two of the major investments that it has made in Spain over the last four and a half years: Evo Banco and Altamira.

Despite that, Fred Khedouri, a senior partner at Apollo, President of the Investment Committee of the European Principal Finance Fund and President of the Board of Altamira, has already told Expansión that the European Principal Finance Fund III is “going to invest in Spain”, with almost USD 5 billion at its disposal.

Original story: Expansión (by D. B.)

Translation: Carmel Drake

 
Apollo Negotiates the Sale of Altamira to Dobank (Fortress) for €500M

21 December 2018 - El Confidencial

The sale of Altamira, the historical real estate arm of Banco Santander, is facing its most decisive moment. The Italian group Dobank has positioned itself as the primary candidate in recent days to purchase the platform owned by Apollo and Santander, amongst others, by submitting an offer for between €500 million and €550 million, according to financial sources consulted by El Confidencial.

The offer is somewhat lower than Apollo and its other two partners in Altamira’s share capital, the Canadian pension fund CPPIB and the Abu Dhabi fund ADIA, had expected. Between the three of them, they control an 85% stake, whilst the remaining 15% is in the hands of Santander.

The shareholders engaged Goldman Sachs to coordinate the sale with the aim of obtaining proceeds of €600 million. Nevertheless, the lack of competition has decreased the price in recent weeks. The deal was also influenced by the withdrawal of Intrum, which decided not to buy Altamira after winning the bid to acquire Solvia, according to the same sources.

That price difference means that Apollo and Goldmans are taking their time over the completion of the operation. Apollo, CPPIB and ADIA paid €664 million for the 85% stake in the real estate firm back in the day. Despite that, they do not have to reach that figure to recover their investments, given that they have received various dividends in recent years that compensate their profitability figures.

Dobank is the Italian platform owned by Fortress, the US fund that used to operate in Spain in the recovery of financial assets, through Paratus, Geslico and Lico Corporación.

The platform has been interested in entering the Spanish market for a while and regards Altamira as the ideal partner, given that it is the property manager that has been the most committed to internationalisation. It already operates in Portugal, Cyprus and Greece and the next major market into which it wants to expand is Italy.

Santander has not yet decided what it will do with its 15% stake in Altamira, whether to sell it together with the stakes of the other shareholders or to hold onto it to retain some control over the future of the platform, which still manages some of its assets.

Original story: El Confidencial (by Jorge Zuloaga)

Translation: Carmel Drake

 
CaixaBank Completes the Sale of 80% of its RE Business to Lone Star

20 December 2018 - La Vanguardia

Today, CaixaBank has completed the sale of 80% of its real estate business to two subsidiaries of the US fund Lone Star for around €4 billion.

The operation was formalised on Thursday, after the necessary approvals were obtained, according to reports from CaixaBank, which has specified that this real estate package primarily comprises assets available for sale as at 31 October 2017 and 100% of the company Servihabitat.

All of these assets have been transferred to a newly created company called Coral Homes.

The initial sales price for 80% of the share capital of this company is €3.974 billion, which corresponds to a valuation for 100% of the shares of €4.967.5 billion.

Nevertheless, the initial price will be adjusted up or down over the coming months depending on a series of variables that are typical in these types of operations, said the bank chaired by Jordi Gual and whose CEO is Gonzalo Gortázar.

In parallel to the sale of the real estate portfolio, CaixaBank and other companies in the group have signed a servicing contract with Servihabitat for their real estate assets, present and future, for a period of five years.

The global impact of the operation is estimated to be a loss of €40 million net of taxes.

Meanwhile, the impact of the deal on the fully loaded CET 1 capital ratio is estimated to be an improvement of 15 basis points.

Aura advised Lone Star on this purchase.

Original story: La Vanguardia 

Translation: Carmel Drake