npl-reo Market News: Spanish Real Estate Intelligence

The real estate company created to take over Banco Popular's toxic assets has debt with Morgan Stanley and Deutsche Bank amounting to 7.3 billion euros.

The contracts signed with Cerberus and the FROB have a nominal value of around 500 million euros.

The NPL ratio is 4.5%, higher than the European average. Banks have offloaded real estate assets worth more than 7 billion euros in 2021.

Spain has the second-highest level of non-performing loans (NPLs) in Europe, behind just France.

Apollo's portfolio has assets valued at €180 million, with an outstanding debt of around €140 million.

Morgan Stanley’s deal for the Hercules Project, which has yet to be finalised, concerns a portfolio of loans with an outstanding balance of close to 200 million euros.

Participants in the discussion on NPLs predicted that the first new asset type to arrive would be failed retail, tourism and leisure ICO (Instituto de Crédito Oficial) loans.

The nominal value of the loans acquired by KKR stands at €580 million, sold at a discount of around 65%.

Even though Spain has already carried out one of the largest deleveraging programmes of NPLs in the EU, the market is recovering once again, as servicers see greatly increased turnover.

October was largely defined by the sale of the developer Vía Célere and the Council of Ministers’ approval of the new Housing Law.