Bain Establishes Joint Venture To Manage Real Estate Asset Portfolio From Liberbank

24 October 2017 – Bain Capital Credit

Bain Capital Credit, LP announced today that it has entered into a binding agreement to establish a joint venture company, which will own and manage a portfolio of repossessed real estate assets from Liberbank. Bain Capital will control and manage the JV with an 80% stake; the two other shareholders are Liberbank and Oceanwood. Bain Capital Credit now owns and manages ten loan and real estate portfolios in Spain.

The portfolio has an appraisal value of more than €600 million and primarily comprises residential units, land and work-in-progress (WIP) assets across Spain. Bain Capital Credit will actively manage the portfolio, including developing some of the land and WIPs.

“We are excited to expand our position in the Spanish real estate market and to control the majority of this JV alongside Liberbank and Oceanwood,” said Alon Avner, a Managing Director and Head of Bain Capital Credit’s European business.

“We continue to consider Spain one of the most attractive real estate markets in Europe and this portfolio’s concentration in central and northern Spain provides a great degree of diversification for our portfolio,” said Fabio Longo, a Managing Director and Head of Bain Capital Credit’s European non-performing loan & real estate business. “This is a great opportunity to participate in Spain’s recovery and to further expand our footprint in the Spanish residential development sector. Furthermore, this investment showcases our expertise in executing complex transactions that require close collaboration with the seller under compressed timelines,” added Mr Longo.

The support in executing this deal was provided by Altamira Asset Management, as real estate servicing specialists; Aura REE and Basico, as real estate valuation specialists; and Cuatrecasas, as legal counsel.

Original story: Bain Capital Credit

Edited by: Carmel Drake


Bain Buys c. €1,000M In NPLs From Ibercaja & Caixa Geral

13 July 2017 – El Confidencial

Bain Capital Credit has set its sights on Spain and Portugal and has purchased a total of €1,000 million in non-performing loans from Ibercaja and Caixa Geral. On Wednesday, the entity announced the acquisition of a portfolio of loans from Banco Ibercaja, which constituted the ninth acquisition of a portfolio in Spain by Bain Capital since 2014. The portfolio has a nominal value of €489 million and contains non-performing bilateral and low-yield loans with first ranking lien over property developer assets. The collateral behind the loans primarily comprises plots of land in the most reputed cities in the country for the development of residential properties and by real estate assets.

“We are excited about the opportunity to strengthen our position in the property development sector through this investment”, said the Director and Head of European Business at Bain Capital Credit, Alon Avner. Similarly, the firm has said that Spain is one of the most attractive markets in Europe in terms of unsecured non-performing loans and real estate assets.

In addition, for the acquisition to be successful, Bain Capital has engaged Hipoges and Altamira Asset Management, both loan management specialists; Basico, Deloitte Real Estate and JLL, as providers of real estate valuations; and Allen & Overy, as legal advisors.

On a roll with its European expansion

With the aim of strengthening its presence in the European markets, the US private equity fund has also just made its debut in Portugal. Its first operation there has involved the purchase of a portfolio of non-performing and low-yield loans with a total outstanding balance of around €476 million, as well as some recovered real estate from Caixa Geral de Depósitos, the most important bank in Portugal in terms of assets.

The offer has come after the Portuguese Government allocated €2,500 million to these types of assets as a stimulus measure. “We see great potential in Portugal, especially in the markets for real estate and low yield assets. We hope to close more operations in the future”, said the Director and Head of the Real Estate and NPL business for Europe, Fabio Longo.

The portfolio mainly consists of bilateral loans, backed by real estate guarantees, to small and medium-sized companies, as well as to larger companies. The loan guarantees span a wide range of asset classes, such as residential complexes, both finished and in progress, industrial and tertiary real estate assets, and land. “This investment demonstrates our expertise when it comes to carrying out complex transactions that require dedication and close collaboration with the vendor”, added Longo.

The following players participated in the operations: Hipoges and Finangest, as loan management specialists; Aura REE, JLL and CBRE, as suppliers of real estate valuations; and Uría Menéndez Proença de Carvalho, a local law firm.

Original story: El Confidencial (by Carmen Alba)

Translation: Carmel Drake

Europe GRI 2017: 11-12 September, Paris

12 July 2017 – Press Release

Aura REE & GRI Club have come together for Europe GRI. Senior real estate investors, developers, lenders, asset owners, major corporates and planners connect, share ideas and strengthen relationships. The collegial discussions enable you to interact and engage – much like an after-dinner conversation in your own living room. Identify like-minded peers, build relationships, and continue the conversation afterwards.

Members and non-members are welcome. If you would find it useful to join your peers at this exclusively senior-level club meeting, you can register here.

Register | Programme

Confirmed Participants include:

Brian Betel, Managing Partner, ASG Iberia Advisors
Steven Broch,  CIO, Aerium Group
Hunt Doering, Managing Director, Baupost Group International
Michael Zerda, Managing Director, Blackstone
Dale Lattanzio, Managing Partner, DRC Capital

Pedro Abella Langa, General Manager, H.I.G. Capital
Gregory Clerc, Managing Director, Bank of America Merrill Lynch
Duncan MacPherson, Managing Director & Head of Debt, Starwood Capital Europe Advisers
Cristina Pérez Liz, Managing Director, Kennedy Wilson
Norbert Müller, Managing Director, Deutsche Pfandbriefbank

Manuel Holgado, Partner, VKronos Investment Group
Tom Rowley, Managing Director, Angelo, Gordon Europe
Trish Barrigan, Senior Partner, Benson Elliot Capital Management
Michael Abel, Managing Director, TPG
Tavis Cannel,  Managing Director, Goldman Sachs International

Manuel Enrich, Investor Relations Director, Sareb
Miguel Pereda, CEO, Grupo Lar
Nic Fox, Partner & Head of Middle Europe, Europa Capital
Fraser Denton, Managing Director, UK & European Investments
David Matheson, SVP, MD Director Investments-Europe, Oxford Properties Group

Jeffrey Dishner, Senior Managing Director,  Starwood Capital Europe Advisers
Chris Evans, Founding Partner, Hamilton Hotel Partners
Ekaterina Avdonina, Managing Director, Delin Capital Asset Management
Christian Nickels-Teske, Head of Treasury Europe, Prologis Ian Worboys, CEO, P3 Logistic Parks 

Peter Cole, Chief Investment Officer, Hammerson
Carrie Hiebeler, Senior Investment Officer, Ventas, Inc.
Gordon Black, Senior Managing Director, Co-Head Europe, Heitman
Gregory Lanter,  Vice President Global Development, Club Méditerranée

Sessions Include:

Residential in Spain – Is product scarcity solved by the acquisition of developers?
NPLs – The last chance saloon?
Retail in Spain – Primary vs. Secondary cities
Co-Investment – As deals mature, will partners get their hands burnt?
European Gateway Cities – Where’s the smart money heading?
The Global Shift Towards Mediterranean Hospitality – New regions or new money?
Modern Retail – Convenience, leisure, technology or community?
Residential Alternatives – Are great operating partners essential or overrated?
What is Real Estate These days? – Financial asset or a service?

For event participation, contact:

Loredana Carollo | Club Director Spain
+44 (0) 20 7121 5089 | |

Original story: Press Release

Edited by: Carmel Drake

Bain Capital Raises €2,770M & Sets Its Sights On Spain

8 August 2016 – Expansión

Bain Capital wants to become one of the largest buyers of real estate in Spain. On Thursday, the US fund announced that it has completed the acquisition of three asset portfolios from Spanish banks, worth €1,146 million, over the last few months. The sellers are Cajamar, Sabadell and Bankia in three separate deals.

The acquisitions have been made through the fund’s Bain Capital Credit business unit, known until now as Sankaty.

And as if that weren’t enough, in the last few days, the US investor has completed the creation of a new fund in the USA worth $3,100 million (€2,769 million) for distressed investments (assets close to bankruptcy) and assets in special situations, according to Bloomberg.

“We see potential for making new investments in the Iberian Peninsula, especially in the real estate and overdue loan markets”, said Fabio Longo, CEO and Head of the real estate and overdue loan business in Europe at Bain Capital Credit. “We are excited about the opportunity to consolidate our position in the market for non-performing real estate assets in Spain through these investments”, added Alon Avner, CEO and Head of Bain Capital Credit’s European business.

Individual transactions

Of the three portfolios purchased, the largest was bought from Cajamar, containing €511 million of overdue syndicated and bilateral loans, granted primarily to real estate developers in different phases of bankruptcy. This deal, known as Project Baracoa, was the first major competitive sale of loans by a Spanish entity.

In addition, Bain Capital Credit acquired a portfolio of loans with a nominal value of €415 million from Sabadell, comprising overdue loans to property developers, mainly secured by residential and tertiary assets. This operation was known in the market as Project Pirene.

The most recent purchase by the US fund in Spain involved the Project Lane portfolio, comprising €220 million of foreclosed assets sold by Bankia. This was the first operation of its kind carried out by the nationalised group after the failed sale of Project Big Bang at the end of last year, through which it had wanted to sell all of the homes, developments and land on its balance sheet. In the end, Bankia was unable to reach an agreement with the investor who had expressed the most interest, Cerberus.

For all of these operations, Bain Capital has been advised by the asset managers Copernicus, HipoGes and Altamira; the consultancy firms Aura REE and CBRE; and the lawyers J&A Garrigues and Cuatrecasas.

Original story: Expansión (by J. Zuloaga)

Translation: Carmel Drake

Aura REE Launches Operations In Portugal

3 May 2016 – Aura REE

After 2 successful years providing RE advisory and valuation services in Spain, Aura REE has decided to expand its operations internationally, starting with Portugal with immediate effect (from 1 May 2016).

– Aura REE is the leading advisor to foreign institutions acquiring REO & debt portfolios in Spain.  Our proprietary IT platform, launched in 2009, contains more than 14 million real estate assets, with links to the cadastral databasase and national brokers, as well as access to real transaction prices in Spain’s top markets. Our team covers every local market in Spain and operates across all asset types (hotel, residential, land, industrial, nursing homes, commercial, offices,…). In 2015, we performed over 50 portfolio valuations involving assets worth more than €10 billion (Atalaya, Cadi, Goya, Eurostar, Commander, Tourmalet, Wind, Empire, Pampa, Ponte, Jetty, Mirage, Chloe, Liceo, Mamut, Kite, Stream, Aneto, Babieca, Pegasus, Macarena, Silk, Veleta,…)

– Aura REE Portugal has hired Jose Covas, MRICS (Head of Portugal & Head of Valuations) to lead our new team and he will be supported by local teams located across the country, including in the islands. Jose has extensive knowledge of the Portuguese market and wide-ranging experience from his time with WORX/Knight Frank (Portugal Head of Valuation & Advisory), DTZ (Iberia Head of Valuations), Colliers International (Portugal Head of Valuation). Moreover, Jose currently serves as the Portuguese Chairman of the RICS Valuation Group. Our IT platform already contains almost 1 million comparable assets in Portugal.

–  Aura REE plans to continue to expand its operations to other European countries before the end of 2016.

Original story: Aura REE

Edited by: Carmel Drake

Aura REE Advises Sankaty On Purchase Of €560M Portfolio From Bankia

7 May 2015 – Sankaty Press Release

Sankaty Advisors, LLC, the independently managed credit affiliate of Bain Capital, announced yesterday that it has acquired a portfolio of secured loans from BFA-Bankia Group, through a controlled affiliate.

Aura REE provided real estate valuation advice on the transaction; J&A Garrigues acted as legal advisor; and Copernicus, a Spanish financial services company, assisted Sankaty with the transaction due diligence and will also act as the servicer for the portfolio post-acquisition.

The portfolio—which has a par value of €560 million—is made up of defaulted bilateral and syndicated Spanish real estate developer and SME loans, secured primarily on various real estate collateral. This is Sankaty’s second loan portfolio transaction with Bankia in the last 12 months, which further develops its experience and understanding of the Spanish market.

“We are excited to be making this investment in Spain, our second acquisition in the market in the last 6 months. This transaction further enhances our track record of investing in complex and idiosyncratic portfolios across Europe, where we have the ability to leverage our experience while remaining flexible to maximize value for our investors,” said Alon Avner, a Managing Director and Head of Sankaty’s European business, which has bought €2.7 billion in loan portfolios from European banks over the last three years.

Original story: Sankaty Press Release

Edited by: Carmel Drake

AURA REE Advises on Bankia’s NPL Amazona Project Sold to Sankaty & Starwood

24/10/2014 – Expansion, Europapress

Bankia keeps on shedding core assets and curing its balance. Yesterday, the group closed the sale of the NPL portfolio of par value of €772 million backed with property and hotels. Of the total, an €766 million amount corresponds to doubtful loans. It is said that BFA-Bankia could have received between €300 and 400 million for the package.

The buyers of the portfolio called ‘Amazona‘ were U.S. fund Starwood, successful player in the hotel business, and Sankaty Advisors, specialized in corporate debt services.

The NPL volume has been split into two parts. First is made up of secured syndicate and bilateral loans to Spanish SMEs amounting to €421 million, while the other includes hotel-backed credits worth €351 million. The two sub-portfolios jointly encompass 279 contracts.

‘Ever since the price reached its cap, the sale became an extremely competitive process among leading insitutional investors and financial entities’, Bankia said in a statement.

Thanks to the transaction, the bank may reduce its toxic asset volume by €320 million and free funds for new loans. Currently, delinquency rate of Bankia posts 14% with a 59% coverage.

This is the second NPL portfolio transferred by Bankia this October as the entity sold a part of its developer loans to Chenavari, an opportunistic fund that paid around €79 million for the portfolio called ‘Sky Project‘. Moreover, it included 419 REO assets.

‘We are delighted to invest in this Spanish portfolio and extend our path of investing in companies, operative businesses and real estate assets in Europe’, said the head of Sankaty’s division on the Old Continent, Alon Avner.

On the part of Starwood Capital Group, vice-president Peter Denton assured that the team is ‘enthusiastic about acquisition of a portfolio with hotels as underlying collaterals’.

AURA REE, Hatfield Philips International, CBRE, Hellenic Lloyd’s, KPMG and PwC provided their professional services on matters regarding finance and property valuation. Copernicus led the partners through the due dilligence stage and J&A Garrigues through the legal matters.


Original article: Expansión, Europapress

Translation: AURA REE

AURA REE Reports: Cerberus Is the Leading Real Estate Servicer in Spain

1/07/2014 – Bloomberg

Haya Real Estate, a property management company run by Cerberus Capital Management LP, has taken the lead in the distressed-real estate servicing, encompassing a €19.9 billion share of administered assets. The firm currently holds a 22.4% market share with 210.949 properties (30% more than last year), according to OUR REPORT quoted by the site´s journalist Sharon Smyth. Therein, we have analyzed data on assets published on the websites of Spanish banks.

In the article, the reporter adduces the words of our founder and CEO, Fernando Acuña Ruiz, commenting on the matter: “that figure for the value of market is just the tip of the iceberg. It uses only published data. In reality, the market is much larger as there is product, including bad loans, that isn’t made public.”

Madrid-based Haya has added considerably to its market share by signing the 10-year agreement on management of €7.3 billion worth of assets owned by savings bank Cajamar.

Moreover, among other funds buying-out distressed debt and assets, in September 2013 Haya bought Bankia Habitat real estate manager from Bankia for €90 million. Apart from that, Cerberus´s arm signed a contract with Spain´s bad bank on administration of its €17 million worth of soured assets in December 2012.

In total, Haya manages property valued at €35 billion and scattered all around Spain. The servicer sells at pace of 30 homes per day.

Haya, Anida and Servihabitat are the biggest real estate managers in the country, accounting for 50% of the market. They are followed by smaller companies such as Aliseda, CXG, Altamira, Aktua and Solvia, according to Aura REE.


Original article: Bloomberg (by Sharon Smyth)

Summary: AURA REE