Lone Star, Blackstone & Apollo Compete for Eurohypo

14/03/2014 – Expansion

Sale of Eurohypo in Spain is taking shape. Lazard, an investment bank, coordinates the sale of the largest credit portfolio in Europe, valued at €4.500 million and widely known as the Octopus Project. In the upcoming days, the company will announce who will take part in the final bidding.

Among the sure finalists there are allies of Lone Star and JPMorgan, Apollo and Santander, and Blackstone and Deutsche Bank. According to sources with knowledge of the process, by now the largest amount has been proposed by the first pair.

Once the finalists chosen, an exhaustive revision of all assets will be run and it is said that their price might exceed €2.000 million.

Quality portfolio

Among the items put up for auction there are debt of Bami, Martinsa-Fadesa, Testa, Inmobiliaria Chamartín, big shopping malls like Zielo de Pozuelo, H2O and a Ritz hotel in Madrid. (…).

Right now, the most determined investor seems to be Lone Star.  The U.S. fund was among the first to arrive to Spain but has not closed any significant transaction yet. (…) At the bidding, the company will go hand in hand with JPMorgan.

In turn, Blackstone has been only buying subsidized houses in Madrid by now. (…) The fund formed alliance with Deutsche Bank.

The third serious player is Apollo. The U.S. fund has already acquired Evo Banco and Altamira (apart from other Spanish assets) and now is seeking good quality assets at bargain prices, supported by Santander.



Original article: Expansión (Jorge Zuloaga)

Translation: AURA REE