Tag: Cerberus

Cerberus Nears Sale of Haya Real Estate to Centricus

10 September 2019

The US-fund Cerberus is near to completing its planned sale of its servicer, Haya Real Estate. Centricus, a London-based fund backed by Softbank, is considered the leading contender to acquire the asset. Both firms declined to comment.

Market sources believe that the firms may finalise the transaction in the coming days. The amount of the sale partly depends on Haya’s renegotiation of its contract with Sareb. Cerberus had initially planned a stock market listing for its servicer, but doubts regarding that renegotiation led the US fund to shelve those plans.

The US fund then opted to sell the service, and in the early summer, Cerberus received three competing offers for Haya, estimated to be around ​​700 million euros, from doBank, Centerbridge and Centricus.

Original Story: La Información  – Pepe Bravo

Adaptation/Translation: Richard D. K. Turner

Cerberus in Talks to Acquire Optimum Re Spain

20 August 2019

Cerberus is offering 14.05 euros per share for 92.88% of Optimum Re Spain’s share capital, valuing the socimi at a total of 70.25 million euros. The fund also agreed to acquire the final 7.12% at a future told, while also offering to take 100% right away, at the reduced price of 13.28 euros per share. Optimum Re Spain was trading at €13.30/share earlier this week.

The US fund is looking to boost its portfolio of residential rental properties. Optimum Re Spain has a portfolio of 16 residential rental buildings in Barcelona.

Original Story: Expansión – José Orihuel

Adaptation/Translation: Richard D. K. Turner

Cerberus and BBVA Hire Konstantin Sajonia-Coburgo to Head Up Divarian

16 August 2019

The US fund Cerberus and BBVA have hired Konstantin Saxony-Coburg to head up Divarian, the company that they created after Cerberus acquired the bank’s real estate assets. Saxony-Coburg left his position as co-head of investment banking at Barclays Spain last year, where he had worked since 2010. Divarian, owned 80% by Cerberus and 20% by BBVA, has €13 billion in assets in its portfolio.

The North American fund and BBVA opted to merge Divarian with the US firm’s servicer, Haya Real Estate, this year. Haya is responsible for managing and selling all Cerberus’s real estate holdings in Spain, except for its land bank, which is managed by Inmoglaciar.

Original Story: El Confidencial – Jorge Zuloaga

Photo: Cordon Press

Adaptation/Translation: Richard D. K. Turner

Sareb Opens Bidding to Other Servicers After Low Bids from Haya, Solvia, Altamira and Servihabitat

30 July 2019

Sareb has notified the four servicers that manage its €34 billion in real estate loans and assets that it will open up bidding on its management contracts to other potential bidders, after having received a round of offers that it considered insufficient. Haya Real Estate (Cerberus), Servihabitat (Lone Star), Solvia (Intrum) and Altamira (doValue) have been servicing the bad bank’s assets until now. Sareb mandated DC Advisory to manage the process as the bank looks to reduce the size of the commissions it has been paying to the four firms.

DC Advisory and Sareb have reportedly been in contact with smaller, specialised firms such as Hipoges, Finsolutia and Copernicus. The decision is a message to the four current servicers, letting them know that they may lose out on future contracts unless they improve their bids. Sareb is considering dividing some sections of its portfolio by geographical location, reducing the number of managers in each and streamlining its operations.

The process – known as the Project Esparta – sent shudders through the servicing sector and was a factor in the postponement of Haya Real Estate’s IPO last year.  Haya currently has the largest mandate, servicing 37% of the bad bank’s assets (2014). Altamira, in turn, manages 29%, while Servihabitat has 19% and Solvia 15%.

Original Story: El Confidencial – Jorge Zuloaga

Adaptation/Translation: Richard D. Turner

Cerberus and Arrow Capital Team Up to Invest €2 Billion in the Logistics Sector

20 July 2019 – Richard D. K. Turner

Cerberus and Arrow Capital Partners have teamed up to create a new joint venture named SIRE (Strategic Industrial Real Estate). The two firms aim to control a €2-billion portfolio of logistics assets, targeting long-term investments in both the industrial market and urban logistics properties.

SIRE will primarily invest in high-quality, low-risk assets (core plus), looking for returns exceeding 5%, as it bets on continued growth in the e-commerce market. The new firm will invest in Spain, Germany, United Kingdom, Italy and the Benelux countries. SIRE intends to invest in individual properties worth between 5 and 100 million euros and portfolios valued between 10 and 500 million euros.

Original Story: El Confidencial – Ruth Ugalde

Sabadell Opts to Sell Subsidiary to Oaktree

1 July 2019

Banco Sabadell, a Catalan bank, has opted to sell its developer, Sabadell Desarrollos Inmobiliarios, to the U.S.-fund Oaktree in a transaction reportedly worth 850 million euros. The asset management firm beat out its main rival for the asset, a partnership made up of Cerberus and Kronos.

Sabadell and Oaktree will now negotiate any additional particulars to the agreement. The sale would bring in a windfall for the Catalan bank, strengthening its capital ratio while reducing its risk-weighted assets (RWA).

Oaktree, in turn, will now compete with Neinor, Metrovacesa, Aedas, Via Célere and others. The developer’s holdings include high-quality, developable lands to the north of Madrid and in Barcelona.  Two thirds of the land is ready to develop or already under construction.

Original Story: El Confidencial – Jorge Zuloaga

Adaptation/Translation: Richard D. K. Turner

 

Sabadell Comes Nearer to Completing Sale of Land Bank

24 June 2019 – Merc2

Sabadell came nearer to its goal of selling its land bank as Oaktree firmed up its position as the most likely buyer. The sales process has so far taken more than six months, but the transaction could bring in approximately 850 million euros to the Spanish bank’s coffers.

Both Oaktree, which has had a history of cooperation with Sabadell, and Cerberus, are still in the race for the assets. Regardless of which of the two comes out in front, Spain would have a new actor on the market, capable of taking on the four biggest developers: Neinor, Vía Célere, Metrovacesa and Aedas.

The sale would also be a significant success for Sabadell, as it continues to offload NPLs and REOs at a rapid pace, and at relatively attractive valuations.

Original Story: Merc2 – Carlos Lospitao

Translation/Summary – Richard D. Turner

Cerberus Teams up with Kronos to Bid For Banco Sabadell’s Land Portfolio

19 June 2019 – Eje Prime

Cerberus and Kronos are joining forces in an attempt to acquire Banco Sabadell’s land. They are holding negotiations regarding how they would divide the plots, which are worth around €850 million in total, in the event that the US fund emerges victorious from the bid to acquire Sdin Residencial’s land portfolio.

In theory, Cerberus would hold onto the land that is ready for development as well as those plots already under construction (64% of the total). Meanwhile, Kronos would take ownership of the rest, including the reparcelled and sectorised plots, for which urban planning permission has been granted.

Original story: Eje Prime

Translation/Summary: Carmel Drake

Sareb Offers the Contracts of Altamira, Servihabitat & Solvia to its Rivals

17 June 2019 – El Confidencial

Sareb is on a mission to change its course. According to market sources, the bad bank chaired by Jaime Echegoyen (pictured below) has decided to put its contracts with Altamira (owned by doBank), Servihabitat (Lone Star) and Solvia (Intrum) out to tender two years before their scheduled renewal.

Even though the contracts are not due to expire until the end of 2021, Sareb is putting them out to tender alongside that of Haya Real Estate, which is due to expire at the end of 2019. This represents a boost for Cerberus’s servicer, given that its competitors will now also have to focus on retaining their own contracts rather than just bidding for Haya’s.

In the event that Sareb awards the contracts of Altamira, Servihabitat and Solvia to other entities, it will have to compensate the servicers since their contracts clearly establish early termination clauses.

Altogether, Sareb is looking at putting out to tender the management of €34 billion in loans and properties that it still has left in its portfolio. The four will have to submit their bids in the next few months, specifying which assets they want to manage and what commissions they will charge.

The largest mandate is that of Haya, which manages assets proceeding from Bankia, which accounted for 37% of the bad bank’s original assets. It is followed by Altamira, which manages the assets proceeding from Catalunya Banc, BMN and Caja 3 (29% of the total); Servihabitat, which manages the assets from NCG Banco, Liberbank and Banco de Valencia (19%); and Solvia,  which manages assets from Bankia (foreclosed), Banco Gallego and Ceiss (15%). Clearly, there is a lot at stake for these servicers.

Original story: El Confidencial (by J. Zuloaga & R. Ugalde)

Translation/Summary: Carmel Drake

Cerberus Submits Bid to Acquire Socimi Optimum Re for €70.5M

13 June 2019 – Expansión

The US fund Cerberus has submitted an offer to acquire 100% of the Socimi Optimum Re Spain, which is listed on the MAB with a market capitalisation of €60.5 million.

Through its shell company Promotora Holding 295, Cerberus is offering €14.10 per share, which represents a premium of 16.5% over the Socimi’s closing share price yesterday of €12.10. As such, Cerberus is valuing the Socimi at €70.5 million.

Optimum Re was created in 2016 and has invested €65 million in the purchase of buildings and another €5 million in the renovation of homes. As at 31 December 2018, its assets were worth €104.77 million.

Original story: Expansión (by S.S.)

Translation/Summary: Carmel Drake