Sareb Puts a €1 Bn Loan Portfolio Up For Sale

2/07/2014 – Expansion

Sareb has just started off a new project aiming at speeding the sales of its assets up. The Management Company for Assets Arising from the Banking Sector Reorganization (the Sareb) puts up for an auction more than 100 medium-big loans valued jointly at over €1 billion.

Unlike the other portfolios sold by Spain´s bad bank, the “Kaplan Project” will seek buyers through block sales (investors choose the asset lot) or by bilateral sales process.

Collateral Property

The majority of the loans are non-performing with residential assets (houses and land) as collaterals. Both the finished dwellings and the plots are spread all over the country but mostly they concentrate in Madrid, Catalonia and Andalusia.

“Kaplan”´s appearance on the market has evoked great interest among large international investment groups eyeing the Spanish real estate market in search of opportunities. However, Sareb is also weighting up giving the one hundred debtors a chance to acquire their loans.

The bad bank will pursue at closing the transaction within two months. The term seems longer than usual due to the sale complexity level, the size of the portfolio and the summer time.

The public company manages assets estimated to be worth of €50 billion, out of which 80% are financial assets. Roughly two weeks ago, Sareb announced the sale of portfolio “Pamela“, including at least 24 loans with property for rent in Madrid as the guarantees.

In the first four months of the year, the Spanish bad bank sold 5.175 housing units. Retail sales brought it more than €250 millio, while through the wholesale channel €130 million flew into it. Last year, Sareb sealed deals on over 12 wholesale portfolios with institutional investors, out of which 80% were syndicated credits or with real estate assets as collaterals.


Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE