• Transaction / Assets
    NPLs Portfolio
  • Seller
    Ibercaja & Caixa Geral
  • Buyer
    Bain Capital
  • € MM
    1000

Bain Buys c. €1,000M In NPLs From Ibercaja & Caixa Geral

13 July 2017 – El Confidencial

Bain Capital Credit has set its sights on Spain and Portugal and has purchased a total of €1,000 million in non-performing loans from Ibercaja and Caixa Geral. On Wednesday, the entity announced the acquisition of a portfolio of loans from Banco Ibercaja, which constituted the ninth acquisition of a portfolio in Spain by Bain Capital since 2014. The portfolio has a nominal value of €489 million and contains non-performing bilateral and low-yield loans with first ranking lien over property developer assets. The collateral behind the loans primarily comprises plots of land in the most reputed cities in the country for the development of residential properties and by real estate assets.

“We are excited about the opportunity to strengthen our position in the property development sector through this investment”, said the Director and Head of European Business at Bain Capital Credit, Alon Avner. Similarly, the firm has said that Spain is one of the most attractive markets in Europe in terms of unsecured non-performing loans and real estate assets.

In addition, for the acquisition to be successful, Bain Capital has engaged Hipoges and Altamira Asset Management, both loan management specialists; Basico, Deloitte Real Estate and JLL, as providers of real estate valuations; and Allen & Overy, as legal advisors.

On a roll with its European expansion

With the aim of strengthening its presence in the European markets, the US private equity fund has also just made its debut in Portugal. Its first operation there has involved the purchase of a portfolio of non-performing and low-yield loans with a total outstanding balance of around €476 million, as well as some recovered real estate from Caixa Geral de Depósitos, the most important bank in Portugal in terms of assets.

The offer has come after the Portuguese Government allocated €2,500 million to these types of assets as a stimulus measure. “We see great potential in Portugal, especially in the markets for real estate and low yield assets. We hope to close more operations in the future”, said the Director and Head of the Real Estate and NPL business for Europe, Fabio Longo.

The portfolio mainly consists of bilateral loans, backed by real estate guarantees, to small and medium-sized companies, as well as to larger companies. The loan guarantees span a wide range of asset classes, such as residential complexes, both finished and in progress, industrial and tertiary real estate assets, and land. “This investment demonstrates our expertise when it comes to carrying out complex transactions that require dedication and close collaboration with the vendor”, added Longo.

The following players participated in the operations: Hipoges and Finangest, as loan management specialists; Aura REE, JLL and CBRE, as suppliers of real estate valuations; and Uría Menéndez Proença de Carvalho, a local law firm.

Original story: El Confidencial (by Carmen Alba)

Translation: Carmel Drake

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