• Transaction / Assets
    €800M problem loan portfolio
  • Seller
    Banco Sabadell
  • Buyer
  • € MM

CPPIB Buys €800M RE Portfolio from Sabadell

20 December 2017 – Eje Prime

With year-end just around the corner, the major players in the real estate sector in Spain are putting the pressure on to close operations. Such is the case of Sabadell, which has just sold a portfolio of real estate assets worth €0.8 billion to the Canadian fund Canada Pension Investment Board (CPPIB) for approximately €0.2 billion.

This investment giant, which channels investments worth €210 billion, has won the auction for Project Voyager, through which the entity chaired by Josep Oliu is divesting €0.8 billion in problem loans linked to the construction, SME and hotel sectors, according to Voz Pópuli. The other finalists were Deutsche Bank, Bain Capital and Cerberus.

The completion of this agreement will represent CPPIB’s first investment in Spain; the fund is known for its conservative profile. With this sale, Sabadell will comfortably exceed its annual target of reducing its volume of problem assets by more than €2 billion. As at the end of September, it had decreased the balance by €1.764 billion, to just over €15.5 billion.

Original story: Eje Prime

Translation: Carmel Drake