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.
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.
Original article: Expansión (Jorge Zuloaga)
Translation: AURA REE