CGD Sells 300 Million Euros of Real Estate in First Half of 2018

27 July 2018

Caixa Geral de Depósitos sold more than 300 million euros worth of real estate in the first half of 2018, 110 million euros of which has already been finalised (written deed issued). This amount includes a €113-million portfolio of NPLs whose loans are all more than five years overdue.

1,138 properties were sold in the first half of 2018.

Caixa announced net loan impairments of 113.0 million euros in the first half of the year and a credit risk cost of 0.38%,” confirming the quality of CGD’s assets as well as its level of coverage.”

“More properties are being sold than are coming in,” the bank’s CEO said, underlining the beneficial trend for CGD.

The credit risk cost (impairments divided by the loan portfolio) stood at 0.38%, worsening in relation to June 2017, because, CFO José Brito explained, the bank decided to reinforce impairment coverage to facilitate the sale of loan portfolios.

Another set of properties, which are apart from the portfolio of properties received for non-payment of loans, includes the bank’s building on the Rua do Ouro, which Paulo Macedo said would now be put up for sale.

Regarding Comporta, where CGD has outstanding loans of about €120 million, Mr Macedo said he “welcomes the postponement”, for the second time, of the sale of the Herdade da Comporta real estate fund, which will bring more certainty regarding the existing offers.

“What I would say is that we welcome the decisions of the assembly because we believe that a process of due diligence would be conducted on the participating consortia, including an evaluation of financial capacity. That way, we can take whom the parties’ capacity to develop such an important project, “he said.

This Friday, a meeting of shareholders in the fund (Rioforte, Novo Banco and members of the Espírito Santo family or former family friends), which manages the property (Gesfimo) met to vote on the existing offers. However, the vote was postponed until September 28, when an assembly will be held to analyse any proposals that are submitted up to eight days before.

At the meeting held this morning at the Sana hotel in Lisbon, Rio Forte (former Espírito Santo Group), which owns 59% of the fund, and Novo Banco, which controls another 15%, agreed to postpone a decision on the sale. They intend to give the three competitors until September 20 to reformulate their offers, which must then be binding, together with letters of comfort emitted by supporting banks.

In the race for Comporta is a consortium that brings together British entrepreneurs Mark Holyoake and Anton Bilton and the Portuguese group Portugália, a partnership between Paula Amorim and French millionaire Claude Berda and a group led by French executive Louis-Albert de Broglie.

The offers for the Comporta fund range from €20 to €36.5 million, in addition to other elements in the offers and the assumption of the outstanding debt to Caixa Geral de Depósitos, which is around €120 million.

Original Story: Jornal Econômico – Maria Teixeira Alves

Photo: Cristina Bernardo

Translation: Richard Turner