Santander Forms Alliance With Apollo to Bid For Octopus

12/02/2014 – El Confidencial

The cooperation between Banco Santander and Apollo fund has extended to the tender of the €5.000 million credit portfolio of Eurohypo. (…).

By now, Santander has solely sold non performing loan portfolios (…) but this time the bank saw a great opportunity in the portfolio, namely in the part of up-to-date credits included in the Octopus Project.

Commerzbank wishes to shed the €5.000 portfolio, out of which about €3.300 million refers to unstressed credits backed by office buildings and shopping centers, while €1.700 million corresponds to unpaid loans. (…).

Santander and Apollo have a serious competitors to confront at the bidding. Among others, there are alliances of Blackstone and Deutsche Bank and Värde Partners and Kennedy Wilson, let alone Lone Star, Fortress, HIG, Cerberus, Orion, Oaktree, Axa and Bank of America Merrill Lynch that are looking for partners.

(…) The Octopus portfolio contains loans granted for construction of several shopping centers in Madrid, like Zielo in Pozuelo de Alarcón (developed by Hines) or H20, acquired by Alpha Real Trust. Also, it includes debt of Bami. Mean differential rate for these credit lines is 120 basic points over Euribor, juxtaposed wit the 400 points currently grabbed by banks.

 

Original article: El Confidencial (Augustín Marco)

Translation: AURA REE

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