Project Castillo: Blackstone Puts 11,000 of Catalunya Banc’s Subprime Mortgages Up for Sale

13 June 2019 – El Confidencial

Blackstone has engaged Bank of America to liquidate almost all of the remaining Catalunya Banc subprime mortgages that it purchased from the State between 2014 and 2015 as part of Project Hércules.

After almost five years of actively managing the portfolio, the US fund now has just 31,000 of the more than 100,000 subprime mortgages that it purchased, which are worth €1 billion compared with €5.7 billion in 2015.

Project Castillo is going to contain almost 11,000 of those mortgages, all of which are up to date in terms of payments, but which have been refinanced at some point over the last 5 years.

This sale forms part of a series being undertaken by Blackstone as it completes its first cycle of investments in Spain. In this context, the US fund’s rental home Socimi Fidere put most of its assets up for sale recently.

Original story: El Confidencial (by Jorge Zuloaga)

Translation/Summary: Carmel Drake

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