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npl-reo Market News: Spanish Real Estate Intelligence

Fortress and Bain more likely to win NBG’s Project Icon tender

The bid submission date NBG's Icon portfolio was postponed to early February. The portfolio consists of denounced or very late loans of small and medium-sized enterprises.

The new 10-day extension was deemed necessary as Fortress and Bain did not have the time to conclude the due diligence as they also claim the Alpha Bank's Neptune project.

Bain (in joint venture with Elliott) and Fortress are the most likely to win the Icon project tender as Apollo and Centerbridge who also went through the second phase, show less interest in concluding the due diligence.

The portfolio for sale comprises 7,300 denounced loans or loans in late arrears of 1,500 small to medium-sized enterprises. The debt is €1.52 bn and the bank's total claim is €2.5 bn.

The loans have mortgages on some 6,000 properties worth €1.1 bn. Commercial and industrial real estate (offices, shops, hotels, warehouses, industrial sites) are valued by the bank at €800 m. 27% of the mortgaged properties are located in Athens and another 23% in Macedonia, North Greece.

About 55% of businesses whose loans are for sale have stopped operating. The portfolio is divided in two sections. The first relates to loans of 137 small and medium-sized enterprises with a debt of €959 m and the other to loans of small and very small enterprises with a debt of €564 m.

With the successful completion of the Icon Project, NBG will significantly consolidate its portfolio of denounced SME loans.

The NBG has by far the highest coverage ratio of NPEs in the category of very small businesses, reaching 77%.

Original Source: Euro2day

Translation/Adaptation: Kiki Athanasiadis

Cyprus: Qualco purchased Astrobank NPLs and REOs

AstroBank has agreed to sell Trusset Asset Management Limited to Qualco.

More specifically, AstroBank sold 74.9% of Trusset Asset Management Limited, a start-up company, to jointly manage the Non-Performing Exposure portfolio and AstroBank's REOs. AstroBank will retain 25.1% of the company.

As part of AstroBank's acquisition of the business, Qualco will employ 37 members of the bank's staff, who have so far managed the portfolio.

In additionQualco will acquire from AstroBank all relevant IT, process, product, and AstroBank collective expertise in the management NPLs and REOs. These portfolios are still calculated in the Bank's balance sheet.

 This agreement is part of AstroBank's strategy to reduce its NPLs and is expected to improve the Bank's capital adequacy ratio by about one percent, subject to certain conditions, including approval by the Protection of Competition Committee of Cyprus.

The consortium is expected to combine AstroBank's local experience and expertise with Qualco’s key international experience, best practices and Debt Recovery software in order to become a significant player in Cyprus.

Since its founding 20 years ago Qualco Group, with headquarters in Athens and offices in the United Kingdom, France, Cyprus and Brazil, has served more than 70 customers in 15 countries.

Original Source: eRed.gr

Translation/Adaptation: Kiki Athanasiadis

2019: The Greek banks approved €400 m mortgages

The figures are far from the golden era of mortgage lending that peaked in 2007 with total disbursements exceeding € 16 billion.

This year, at the end of a decade of declining new disbursements, there is an increased demand for mortgage lending compared to the second half of 2018.

According to bank executives, total new home loan disbursements are estimated to exceed €400 m, up from about €250 m last year. As they point out, these figures are far from the golden era of mortgage lending that peaked in 2007 with total disbursements exceeding 16 billion euros. These figures are no longer what the domestic banking system wants, bank executives say. What the banks want is a healthy demand that will ensure a smooth repayment of the loans.

Commenting on low demand for loans, they point out that after a long period of deep crisis, the recovery of mortgage lending comes with a slight lag. At first there is a growing demand for business and then retail banking. In any case, the course of demand is directly influenced by the growth rates of the economy.

Original Source: Euro2day

Translation/Adaptation: Kiki Athanasiadis