BBVA Sells €80 Mn Debt of Realia to KSAC Europe

3/06/2014 – Expansion

Vulture funds snapped a considerable part of Realia´s debt. Most recently, BBVA shed the syndicated loans of the real estate company by transferring them to a Luxemburgian vehicle KSAC Europe, belonging to King Street, for around €80 million.

The loan in hands of BBVA was a part of refinancing for the total of €847 million which Realia obtained last year also from Sareb, Santander, Sabadell, Barclays, KutxaBank and CaixaBank.

After struggling hard to crawl out from the indebtness, Realia managed to decrease the loan volume to €792 million and extended the redemption term to 3 years (by the end of July 2016). First Kutxabank and Barclays and few months later also Sareb, Santander and CaixaBank shed their part of the syndicated credit.

In detail, the bad bank sold a €440 million worth with a 35% price abateness to Fortress and Azora (joint venture in Aneto fund). Santander transferred €100 million in loans to the same buyer as the one aspiring for BBVA´s piece – KSAC Europe. In turn, Caixabank sold its €47.8 million worth to Goldman Sachs. Only Sabadell retains its exposure to the debt, holding about €120 million loans.

In total, Realia´s indebtness showed €2.1 billion in the first quarter, although the firm cut in it by almost half (€1.03 billion) by selling stake in its French branch SIIC de Paris.

The loan portfolio already attracted attantion of opportunistic purchasers, for example Fortress and King Street teamed up to bid for the package, while other funds propose an equity swap.


Original article: Expansión (by D. Badía)

Translation: AURA REE