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Carige. The funds are competing for Marina Genova

16 May, Il Messaggero

The funds are competing for Marina Genova, the port facility near the Cristoforo Colombo airport property of the entrepreneur Giuseppe Rasero. Marina Genova has overdue debts with Carige for approximately 90 million. The property is included in the stock of payments past-due for over 90 days and classified as unlikely to pay (UTP). The bank guided by Paolo Fiorentino sold a portfolio of 85 past-due debts for 500 million, consistent with its derisking strategy which the ECB has been pushing for. The Isabella project, managed by Kpmg and BonelliErede, includes impaired loans for a total of 1.4 billion, 40% of which are referred to the shipping sector. About 30 offers have come in the past few days. Some of them are for the whole portfolio, while others are for a group of credits, or for about ten or even for just one. York Capital and Cerberus are among these ones. According to Il Messaggero, they might have bid for Marina Genova. Unlikely to pay are generally discounted at 50-55% and the offers of the two American funds should be aligned to this trend. Fortress and Blackstone made an offer also for the debts of the shipping group of Ignazio Messina, with an overdue debt amounting to 400 million. 49% of his company will go to MSC of the Aponte group and the liabilities will be transferred with the operation. Carige will likely refuse the proposals of the two funds since the company is seriously focused on the reorganization plan.

Short-list coming soon

Returning to Marina Genova, whoever will obtain the credit will also have access to the negotiations with Rasero. Hence, the negotiation might become a very attractive transfer of property due to the importance of the asset for the tourism of the city. If the operation is successful, it will be another Italian asset bought by funds. According to Kpmg, the 20 main transactions completed in 2017 and 2018 carried out by funds (from Allfunds bank to Ceme, till Prelios) translated into investments for 2.8 billion. The touristic port has 500 moorings with over 15 metres for fishing distributed among 4 docks with 100 moorings for boats over 24 metres and superyacht. Close by, there are 1,000 parking spaces, private parking lots on the jetties and garages.

Marina Genova is 5 minutes away from the airport by shuttle bus and it’s located close to the finest tourist locations on the Mediterranean: Portofino, Porto Venere, Porto Cervo and Saint Tropez.

York Capital is one of the most active investors on the Italian market. The company has recently put a guarantee of the credit of Banco Bpm towards Porta Vittoria for about 210 million, beating the competitor Algebris. Cerberus, with the senior advisor Roberto Nicastro, is a familiar name. The fund participated in many bids for impaired loans and it’s one of the short-listed names for Alitalia. Whereas Algebris is one of the 30 bidders for the Carige debts. There is also Fonspa, which acquired for 1.2 billion the Carige NPL platform as well as a 220 million NPL stock from CreVal. Finally, there are also Fortress, JP Morgan and Deutsche Bank among the bidders. The advisors will meet soon with the Carige management to select a short-list.

Carige has almost solved its difficulties thanks to the Fiorentino management, as shown by the last quarter ended with a profit equal to 6.4 million (in comparison with the loss of 41.1 million in 2017) with a progressively growing operating income of 135.2 million. Besides the 500 million of overdue debts of the Isabella project, Fiorentino will sell other 200 million in 2019 and will securitise with Gacs NPL up to 1 billion in 2018.

Source: Il Messaggero

Translator: Cristina Ambrosi