Sareb Chooses Haya Real Estate to Manage €8.4-Billion Real Estate Portfolio

5 November 2019 – Sareb announced that it has opted to renew its management contract with Haya Real Estate. Haya had already been acting as a servicer for a portfolio of loans and real estate worth €8.4 billion (net book value as of 12/31/18). The new contract will last for 30 months.

The contract is part of Sareb’s new business strategy whose ultimate goal is to “preserve or improve the value of its assets.” DC Advisory advised Sareb on the deal.

Original Story: Cinco Dias – A. Simón

Adaptation/Translation: Richard D. K. Turner

Lone Star to Sell Portfolio of 2,500 Homes Held by Coral Homes

28 October 2019 – Lone Star is looking to sell a portfolio of 2,500 homes held under its subsidiary Coral Homes, which the fund acquired from CaixaBank. Lone Star’s deal with CaixaBank included the acquisition of a roughly €7-billion portfolio of foreclosed homes through Coral Homes, in which the fund has an 80% stake. CaixaBank owns the remaining 20%.

The sale, known as the Kingfisher Project, is in an advanced phase. Interested parties are expected to submit binding offers within the next few weeks.

Original Story: El Confidencial – J. Zuloaga & R. Ugalde

Adaptation/Translation: Richard D. K. Turner

Spain’s Banks Look to Sell €19 Billion in Real Estate Assets and NPLs in 2019

21 October 2019 – Although the pace of sales has fallen in recent years, Spain’s banks are continuing their efforts to reduce their exposure to non-performing loans and foreclosed real estate assets left over from the financial crisis of the first half of this decade. In the year to date, those banks have sold portfolios of toxic assets worth a total of more than €7 billion. Another twelve other transactions worth approximately €11.7 billion, however, are on course to conclude by the end of this year.

Sabadell has been particularly active, having sold €2.55 billion in portfolios such as Greco and Rex. Unicaja and Ibercaja have also sold assets worth more than €1.5 billion. Santander is currently negotiating the sale of another two portfolios.

Spain’s financial institutions are expected to end the year with total sales of nearly €19 billion, compared to 41.7 billion euros last year, down by more than half.

Original Story: El Español – María Vega

Adaptation/Translation: Richard D. K. Turner

Santander to Sell Two Portfolios of Land and NPLs Worth Nearly €6 Billion

21 October 2019 – Santander is finalising plans to sell two major portfolios of NPLs and REOs, worth a total of approximately 6 billion euros. The bank has already contacted major potential investors to prepare themselves to analyse two portfolios: €2.7 in NPLs, called the Project Atlas, and another €3 billion in land.

Santander has been analysing the portfolios since the spring of this year. The bank is looking to increase the pace at which it is reducing its exposure to the Spanish real estate market. According to publicly available data, Santander had €12 billion worth of NPLs and another €10 billion in foreclosed properties as of June.

These would be the financial institution’s largest divestments since 2017, when it sold €30 billion in assets it had inherited from Banco Popular to Blackstone. Market sources believe that the bank will only finalise the sale during the first quarter of 2020, due to its size and complexity.

Original Story: El Confidencial – Jorge Zuloaga & Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner

Sareb Close to Awarding €8-Billion Contract to Service Real Estate Portfolio

21 October 2019 – Sareb has chosen two finalists to vie for the management contract for €8 billion in loans and real estate: Haya Real Estate, controlled by Cerberus, and Servihabitat, by Lone Star. The bad bank expects to award the contract, which is the largest currently on the market, within the next few weeks. The existing contract, with Haya RE, is set is expire, which led Sareb to seek to reduce its costs.

Sareb opted in the spring of this year to place the contract on the market again, to lower its associated costs. Principally, the firm is looking to pay less in management fees, while paying more for successful sales and placements. Until now, the bad bank has been paying roughly €100 million per year in fees.

Four other groups had been vying for the contract: DoValue’s Altamira AM, Intrum’s Solvia, Finsolutia, and Hypoges. However, three other contracts, currently with Solvia, Altamira and Servihabitat, are set to expire in 2021.

At the same time as Sareb is looking to reduce its fees, the contract, known as the Project Esparta, includes the bad bank taking on more responsibility for the assets. The change has reduced the size of the portfolio in play from about €11 billion (at net book value) to roughly €8 billion now. The new servicer’s activities will be limited to selling or renting any properties, while Sareb will take on many of Haya RE’s previous duties.

Original Story: El Confidencial – Jorge Zuloaga & Ruth Ugalde

Photo: EFE / Emilio Naranjo

Adaptation/Translation: Richard D. K. Turner

BBVA Looks for Buyer to Acquire Up to €1.3 Billion in Toxic Real Estate Assets

14 October 2019 BBVA is looking to sell off up to a third of its approximately €1.3-billion portfolio of non-performing real estate assets. The Spanish bank acquired many of the assets during Spain’s financial and real estate crisis when BBVA bought up several of the country’s failing savings banks.

The bank is looking to rid itself of the €3.6 billion in foreclosed assets and €1.345 billion in shares of real estate companies, in addition to unpaid loans from SMEs and individuals valued at about €5 billion.

Some of the groups potentially interested in acquiring the assets include Cerberus, which already bought BBVA’s real estate business in 2018, Apollo, Blackstone, Bain Capital and Lone Star.

The sale, which consists of residential, commercial and land assets is still in its initial phase. However, the bank is looking to complete any sale before the end of the year.

Original Story: Business Insider – Adrián Francisco Varela

Adaptation/Translation: Richard D. K. Turner

Copernicus Hires Ex-Altamira CEO Andrés Cerdán

21 September 2019 – Andrés Cerdán, who was previously the CEO of Altamira Asset Management, has joined Copernicus as CEO, according to market sources.

Cerdán had led Altamira since 2010 but decided to decamp after the firm was acquired by DoBank, a European firm controlled by Fortress, for about €360 million.

Copernicus, founded in 2013 by José Nestola, manages about €9 billion in NPLs and real estate assets for banks.

Original Story: El Confidencial – Agustín Marco

Adaptation/Translation: Richard D. K. Turner

Santander Studying €12-Billion Sale of NPAs

20 August 2019

Banco Santander is considering a potential sale of a €12-billion portfolio of real estate loans by the end of the summer.

The bank is looking to improve its capital ratios in Spain, which are still weighed upon by assets the bank took over from Banco Popular, in spite of a €30 billion sale of assets to Blackstone in 2017, Project Quasar.  On Tuesday, the bank reported that its NPL ratio stood at 7%, above rival banks such as BBVA Spain (-4.9%) and CaixaBank (-4.6%).

Original Story: El Confidencial – Jorge Zuloaga

Adaptation/Translation: Richard D. K. Turner

TPG Reaches Deal on Preferential Access to €175 Million of Sareb’s Assets

20 August 2019

TPG, which recently acquired Témpore Properties, has signed an agreement with Sareb maintaining its partnership with the state company.  Témpore will thus maintain a right of refusal for over 175 million euros in assets owned by the Sareb.

Original Story: La Información – Lucía Gómez

Adaptation/Translation: Richard D. K. Turner

Cerberus and BBVA Hire Konstantin Sajonia-Coburgo to Head Up Divarian

16 August 2019

The US fund Cerberus and BBVA have hired Konstantin Saxony-Coburg to head up Divarian, the company that they created after Cerberus acquired the bank’s real estate assets. Saxony-Coburg left his position as co-head of investment banking at Barclays Spain last year, where he had worked since 2010. Divarian, owned 80% by Cerberus and 20% by BBVA, has €13 billion in assets in its portfolio.

The North American fund and BBVA opted to merge Divarian with the US firm’s servicer, Haya Real Estate, this year. Haya is responsible for managing and selling all Cerberus’s real estate holdings in Spain, except for its land bank, which is managed by Inmoglaciar.

Original Story: El Confidencial – Jorge Zuloaga

Photo: Cordon Press

Adaptation/Translation: Richard D. K. Turner