Bankia Sells Hotel-Backed Loans to Starwood & Sankaty For €400 Mn

7/10/2014 – El Confidencial

Starwood Capital and Sankaty outbid Cerberus at the bidding for Bankia’s hotel and logistics asset portfolio called Amazona. The investment funds paid about €400 million for the non-performing, real estate backed loans of a par value of €800 million.

Collaterals are mostly represented by hotels (27 establishments) but also by logistics and residential units said located in Catalonia, Madrid, Valencia and the Canaries. Looking closely to the assets, one comes across such noteworthy establishments as the 5-star, 250-room Gran Atlantis Bahia Real in Fuerteventura (pictured) or Hotel Mercure Santo Domingo, standing at the Gran Via street in Madrid.

The sale process was kick-started at the beginning of summer and in the meantime the third bidder, Fortress, withdrew its offer.

Thanks to the investment, Starwood Capital finally debuted on the Spanish real estate market as the firm has been scanning emerging opportunities for months. For instance, it took part in the Octopus project tender (by Eurohypo) but it was unsuccessful. The property fund has got considerable experience in the hotel sector acquired through its arm established in 2000, Starwood Hotels & Resorts.

The other buyer, Sankaty Advisors – the branch of Boston-based Bain Capital – has got six offices in the most important cities in the world and manages a €24 billion worth of real estate assets. In its March 2014 report, the company said that Spain had become the principal desire of international investors.

Cerberus has missed the chance to strengthen its position in the country. Back in July, the fund purchased the Sotogrande Hotel and was awarded management of REO assets of Bankia encompassed by its servicer Bankia Habitat.

Original article: El Confidencial (by Elena Sanz & Carlos Hernanz)

Translation: AURA REE

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