Fortress Puts On Sale €1 Billion in Credits of Santander

1/04/2014 – Expansion

Banks are to encounter with new rival in selling delinquent credits: funds that bought these portfolios from them few years ago. The first to put a default credit portfolio up for sale is Fortress. The new ´Luna Project´includes unpaid credits of Santander, Banesto and Santander Consumer Finance worth €1 billion and acquired from Santander for €200 million in 2012.

Fortress´s decision puzzled the sector due to the unfinalized purchase transaction of Lico Leasing and Geslico, begun by the fund at the end of 2013. (…)

Funds like Fortress seek annual profitability between 15% and 20% and duplication of investment within 5 – 7 years. With the new strategy, the U.S. fund wants to make hay while the sun shines and benefit from the growing interest in Spanish property.

Fortress will compete with other credit portfolios currently on sale, namely those of CaixaBank and Catalunya Banc (…).



Original article: Expansión (Jorge Zuloaga)

Translation: AURA REE