• Transaction / Assets
    2 NPL portfolios
  • Seller
    Sareb
  • Buyer
    Deutsche Bank & Oaktree
  • € MM

Sareb Sells €625M in NPLs to Deutsche Bank & Oaktree

20 December 2017 – El Independiente

Sareb (…) is closing 2017 by completing two of its largest operations of the year, with the sale of two non-performing loan portfolios to two large international funds.

The German bank Deutsche Bank has been awarded one portfolio comprising €375 million in non-performing loans, whilst the US fund Oaktree is on the verge of acquiring another portfolio, containing around €250 million in NPLs. Both portfolios, known as Project Inés and Project Tambó, respectively, stand out as two of the largest transactions undertaken by the so-called bad bank this year, confirmed sources familiar with the deals to El Independiente.

Project Inés, which was initially put up for sale with a nominal value of €500 million and which has been closed with a smaller perimeter (€375 million), as tends to be the case, primarily comprises mortgage loans secured by collateral. Meanwhile, Project Tambó was placed on the market with a nominal value of €300 million and now seems to be closing at around the €250 million mark.

Sareb was constituted in 2012 with the mission of selling 200,000 real estate assets, proceeding from the banks, worth just over €50 billion.

Moreover, in July, it launched its channel for the sale of non-performing loans worth €400 million aimed at investors and professionals to boost the divestment of a proportion of its portfolio of financial assets. Its commitment is to proceed with the liquidation of the properties and loans that it has acquired, before November 2027.

To accelerate the process, Sareb plans to debut its Socimi Témpore Properties on the stock market at the beginning of 2018. The Socimi owns a selection of Sareb’s best rental homes, almost 1,400 properties in total, in the metropolitan areas of Spain’s large capitals and other areas with high demand for rental.

The Socimi’s debut will happen during the first quarter of next year, since, although Sareb has everything in place to start to trade and its original plan was to list the company by the end of 2017, its negotiations with the MAB, the alternative market where the Socimi will trade, are still on-going (…).

During the 9 months to September, Sareb sold a total of 13,796 properties, which represents an increase of 55% with respect to the same period in 2016. Of those, 7,855 related to owned properties and 5,941 were linked to loans (…).

Revenues

Sareb’s total revenues as at September rose by 3.6% with respect to the first nine months of 2016, to €2.394 billion.

The company highlights that, given the composition of Sareb’s asset portfolio – 68% of which relates to loans linked to the real estate sector – the weight of revenues resulting from the management of loans is still more significant than those generated from the sale of properties.

Meanwhile, revenues from the management of loans decreased by 6.8% during the first nine months of the year, to reach €1.599 billion, primarily due to the lower interest charged and the reduction in loan repayments and cancelations as the portfolio is smaller than it was last year.

Original story: El Independiente (by Ana Antón)

Translation: Carmel Drake

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