Tag: contract

Cerberus Receives 3 “Low” Offers For its Stake in Haya Real Estate

24 May 2019 – El Confidencial

Cerberus may be forced to revise down its price expectations for the sale of its real estate platform Haya Real Estate. The US fund had been hoping to receive more than €1 billion for the servicer, which is one of the largest in Spain, but so far the offers it has received amount to just €700 million.

There are currently three candidates in the running, namely, the Italian firm doBank, the US fund Centerbridge and the Asian fund Centricus, according to financial sources – all are familiar faces in the Spanish market and are willing to buy the servicer, but not for the asking price.

The reason is that considerable uncertainty exists over the renewal of Haya’s contract with Sareb, despite Cerberus’s efforts to diversify and grow the servicer’s portfolio with purchases such as the Apple Portfolio from Santander last year, and the agreement to purchase and manage almost all of BBVA’s property. Haya also administers assets for Bankia, Cajamar and Liberbank.

Nevertheless, Haya’s main client is still Sareb, for which it manages €21 million in debt and properties, which account for around half of the platform’s assets. That figure will fall to around a third following the agreement with Divarian, formerly Anida (BBVA), but Sareb wants to significantly reduce both the perimeter of management and the fees that it pays Haya, which would hit the servicer’s revenues hard.

As such, the funds in the running to purchase Haya are requesting protection clauses to cover themselves in the event of the various outcomes from the negotiations with Sareb, which are expected to conclude in September. Whether Cerberus will manage to sell its servicer before then remains to be seen.

Original story: El Confidencial (by Jorge Zuloaga & Ruth Ugalde)

Translation/Summary: Carmel Drake

Cerberus Puts Haya Real Estate up for Sale for c. €1.2bn

15 March 2019 – Eje Prime

Cerberus had been planning to list Haya Real Estate on the stock market but it suspended that operation in light of the political instability in the country, amongst other reasons. Instead, the US fund has decided to put the servicer up for sale.

The asking price is €1.2 billion and the advisor Rothschild has already made contact with possible interested parties. They include DoBank, which acquired Altamira in January for €412 million; the Swedish company Intrum, which purchased 80% of Solvia in December; and the fund manager Centricus.

Haya’s contract with Sareb is due to expire at the end of this year and the bad bank is understood to be considering not renewing the agreement as part of a wider strategic rethink.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Cerberus, Intrum & DoBank Bid to Acquire Altamira

15 November 2018 – El Confidencial

There is still an appetite for the servicers’ business. The sale of the 85% stake that Apollo owns in Altamira is making its first cut of candidates, with some of the most high profile investors in the segment amongst the finalists. According to financial sources, the fund Cerberus (Haya Real Estate), the Swedish firm Intrum (Nordic Capital) and the Italian firm DoBank (Fortress) are the candidates that have progressed in the process, which is being coordinated by Goldman Sachs, and which was relaunched after the summer following months on the table.

Other players in the sector interested in Spain are also in the process, both at the domestic and European level. One of those new candidates is the US firm Davidson Kempner, which has a portfolio of USD 30 billion under management and with interests in the transformation of toxic assets in the United Kingdom and Ireland, according to sources involved in the operation.

Apollo is willing to take advantage of the hunger for this type of vehicle to make gains, although it does so after four years at the helm of the servicer and having not been awarded any of the large real estate portfolios that the banks have sold (Santander to Blackstone, BBVA to Cerberus, CaixaBank to Lone Star and the Sabadell-Solvia process, in whose final stretch it is not participating). In fact, this divestment comes after Apollo’s manager for the last few years – Andrés Rubio – left the fund.

The price of the management platform could reach €1.5 billion (debt included), a business for which Apollo paid €664 million in January 2014 in exchange for an 85% stake (the remaining 15% is still owned by Banco Santander). The agreement comprised the management of toxic assets (recovery of loans and sale of properties) until 2028, although the transformation of that perimeter has led to a change in the management conditions (commissions) and to the repayment of a €200 million dividend.

Altamira has assets under management amounting to more than €50 billion, compared with €26 billion in 2014, and a portfolio comprising more than 82,000 properties at the end of 2017, making it the largest servicer in operation in Spain. In addition to its contract with Santander, it also manages assets for Sareb (which account for 30% of its portfolio) and for third parties – international investors, financial institutions, family offices and institutional clients – as a result of the international expansion plan launched in 2017.

Original story: El Confidencial (by Carlos Hernanz)

Translation: Carmel Drake

Changes Afoot: Sareb Considers Modifying the Management of its €35.5bn Portfolio

29 May 2018 – Eje Prime

The bad bank is rethinking its future. The company is analysing the possibilities that the current servicer market offers it in terms of restructuring the approximately €35.5 billion that it has on its balance sheet in a completely different way. The objective of the move, according to sources close to the group, is to generate more profitability.

When at the end of 2014, the bad bank launched the so-called Project Ibero, it awarded the management of its portfolio to four servicers: Haya Real Estate, Altamira, Servihabitat and Solvia, and it distributed the work between the entities, according to El Economista.

Now, the company is analysing what would be the most efficient way of segmenting the assets, and the possibilities that it is considering include the option to “regionalise” the portfolio by geographical area. Likewise, it could organise its catalogue by asset type, given that more sophisticated operators now exist that were not on the scene in 2014, and they specialise by market segment focusing on areas such as logistics, retail and hotel.

In the review of its new strategy, the entity chaired by Jaime Echegoyen (pictured above), is also considering bringing some of the management activity in-house, like it has been doing to date with the large bankruptcy cases, such as for example Martinsa Fadesa. Another example is the property development department, for which it is now looking for an industrial partner, in a process that includes finalists of the calibre of Vía Célere, Aedas Homes and Aelca.

The first contract that Sareb has started to review, which expires at the end of 2019, is the portfolio currently in the hands of Haya Real Estate, with a net value of around €12.5 billion at the end of 2017. The next contracts are not due to expire until 2021, since the duration of the agreements that Sareb signed range between five and seven years from the date they entered into force.

Original story: Eje Prime 

Translation: Carmel Drake

Haya’s Revenues Rise by 12% in Q1 2018 to €56M

24 May 2018 – Eje Prime

Haya is continuing to grow its real estate business. The Spanish servicer, controlled by the US fund Cerberus, recorded revenues of €55.9 million during the first quarter of the year, whereby increasing its turnover by 12% with respect to the same period in 2017. Its EBITDA amounted to €24.4 million during the same period, up by 6% compared to last year.

The volumes of the real estate company amounted to €895.2 million, which represented a YoY increase of more than 40%. The generation of cash by the servicer amounted to €20.2 million, up by 58%, whilst the firm’s net corporate debt stood at €414 million.

Haya, which managed almost €40 billion in real estate assets during the first quarter, was awarded the new Bankia contract a month ago for the management of all of that entity’s toxic assets, including the REO portfolio from the recently absorbed BMN. This week, the servicer placed on the market 4,000 homes from the bank Cajamar.

Moreover, since the beginning of 2018, the company led by Carlos Abad has signed two new contracts for the management of assets with funds and institutional investors. Haya’s next challenge is its debut on the stock market, which Cerberus recently postponed until after the purchase of BBVA’s property portfolio has been signed, which the fund acquired in 2017.

Original story: Eje Prime

Translation: Carmel Drake

Haya Real Estate Wins Contract to Manage Assets Worth €15bn+ For Bankia-BMN

9 April 2018 – Expansión

The negotiations between Haya Real Estate, the Spanish subsidiary of the US fund Cerberus, and Bankia, regarding the management of the latter’s real estate assets, are on the verge of completion. In fact, the parties have already established the perimeter of the new agreement: Haya is going to manage real estate assets worth between €15 billion and €17 billion, in gross terms, on behalf of Bankia and BMN, according to sources in the know.

After receiving the legal approvals to merge the also public company BMN at the end of December, Bankia decided to break the agreement it had signed with Cerberus regarding its property, as well as the agreement that BMN had signed with Lindorff. To do that, it had to pay a “three-figure” indemnity. Other sources in the sector estimate that the compensation payment will have amounted to around €100 million for each fund.

These indemnities depend on who initiates the termination decision, which in this case was Bankia following its integration of BMN.

Open to third parties

The process to take on the management of the real estate assets linked to the resultant entity was subsequently opened up to third parties.

Cerberus will have paid a higher amount than the forecast estimated by Bankia, which took advantage of the merger with BMN to renegotiate upwards a new contract in light of the good times that the real estate sector in Spain is currently enjoying.

Haya Real Estate (Cerberus) took over the management of Bankia’s assets worth more than €12 billion in 2013. At that time, the fund paid between €40 million and €90 million, a range conditioned by the fulfilment of the planned property sales.

The old contract was due to expire in 2023. Now, Haya is going to be Bankia-BMN’s servicer until 2028, according to the sources. Meanwhile, sources at Bankia indicate that the parties are finalising the negotiations and that the finishing touches to the operation have not been agreed yet.

BMN teamed up with Aktua in 2014. The former real estate arm of Banesto is now controlled by the Norwegian fund Lindorff.

Haya Real Estate has become a major player in the real estate sector in Spain. In recent years, it has teamed up with Sareb, BBVA, Cajamar and Liberbank, amongst other entities.

Cerberus’s platform in Spain managed €40.2 billion in assets at the end of 2017, up by 2% compared to the previous year. Having fought off competition from Lindorff in the bid to become the only company to manage the real estate assets of Bankia and BMN, Haya has cleared the way for its stock market debut. The Spanish subsidiary of Cerberus has engaged Rothschild to prepare its IPO.

Bankia will hold its General Shareholders’ Meeting in Valencia tomorrow. The focus will focus on the ERE (collective dismissal) following the integration of BMN and the rumours of a merger with BBVA.

Original story: Expansión (by R. Sampedro)

Translation: Carmel Drake

C&W: 50% More Logistics Space Was Leased in Cataluña in Q1

5 April 2018 – Eje Prime

The logistics sector is continuing to let out more and more space. This is shown by the data for the leasing of this type of asset in Cataluña, where demand for logistics space grew by 50% during the first quarter of the year with respect to the same period in 2017. During the 3 months to March, 187,000 m2 of logistics space was leased in the Mediterranean region, according to data from the consultancy firm Cushman & Wakefield.

The amount of space leased during the first quarter was also 73% higher than the average quarterly volume for the last five years. In total, 18 transactions were closed in Barcelona alone during the 3-month period, 38% more than the thirteen operations that were signed during the same period a year before, explains Savills Aguirre Newman in a report.

By area, 44% of the operations were completed in the Barcelona and Baix Llobregat regions. Similarly, the volume of logistics space leased also grew in counties such as Vallès, which accounted for 38% of the total demand in Cataluña during the period, and in other areas with logistics activity such as Camp de Tarragona, Penedès and Girona.

Of the operations signed since the start of the year, the rental by the food group Mercadona of 29,000 m2 of logistics space in Sant Esteve Sesrovires (Barcelona) stands out. That plot, located on the Can Margarit industrial estate, is owned by the British fund Rockspring.

In addition, the average size of the space leased during the first quarter grew by 8% to reach between 10,000 m2 and 12,000 m2. According to Gloria Valverde, Director of the Industrial Logistics Area at Savills Aguirre Newman Barcelona, “the number of large operations exceeding 25,000 m2 seems to be in line with the available supply since there are few projects that offer such volume at risk for a single operator”.

Prime rents in Barcelona currently amount to €6.50/m2, which represents a YoY increase of 8%. This increase in rentals is conditioned by the lack of Triple A products, the best quality, and the increase in demand from the main operators, which could cause rents to continue rising over the coming months.

Original story: Eje Prime

Translation: Carmel Drake

Sareb Considers Slicing Up Haya Real Estate’s €24bn Mega-Contract

27 March 2018 – Voz Pópuli

Sareb is already working on a new tender for its largest management contract. Specifically, it involves old real estate loans from Bankia worth €24 billion that are currently being administered by Haya Real Estate, the real estate arm of Cerberus. The contract is due to terminate at the end of 2019, but Sareb is already working on different options to launch a tender in the short-term and for the portfolio to be awarded in just over a year.

One of the options on the table involves slicing up the contract into two or more mandates, according to confirmation provided by Sareb to this newspaper.

There are several options under consideration at the moment. The first, placing the €24 billion (in gross terms, the figure amounts to €13 billion in net terms) servicing contract, as it stands today, with a single manager, which could be Haya Real Estate or could be one of its large competitors, such as Altamira, Aktua, Servihabitat, Solvia or Aliseda-Anticipa (Blackstone).

That scenario is the one that most interests Haya Real Estate, which has a lot at stake with this contract, given that it represents 60% of its assets under management, and the firm is in the midst of its stock market debut. It is interested because Cerberus’s platform is the one that knows the assets the best and has the advantage of not having to migrate them, which would slow down Sareb’s rate of sales.

Other options

Alternatively, the mega-contract could be shared out between several platforms. One of the options under consideration is to tender a contract linked to the ownership of the assets. In other words, a large operation like those that Santander and BBVA starred in last year with Blackstone – Project Quasar – and Cerberus – Project Marina -, respectively.

That would also involve the creation of a joint venture company, like the FAB. In this way, Sareb would kill two birds with one stone: deconsolidate assets without forgoing potential gains; and award the management of the assets to a fund-platform.

Another option on the table is to split Haya’s portfolio into two or more batches. That split could be performed by type of asset, linked to the debt (tertiary, residential, land…), or by geographical area, whereby benefitting from the specialisation of the platforms.

The first contract to be renewed is Haya Real Estate’s. The other three are not due to terminate until 2021: Altamira’s with 28,000 properties from the portfolios of Catalunya Banc, Caja 3 and BMN; Solvia’s with 34,000 properties proceeding from Bankia; and Servihabitat’s, with properties and loans from NCG, Liberbank and Banco de Valencia.

Original story: Voz Pópuli (by Jorge Zuloaga)

Translation: Carmel Drake

Adveo Puts 4 Warehouses Up For Sale for €40M

18 March 2018 – Eje Prime

Adveo is continuing with its divestments. The Spanish wholesale group, which specialises in office equipment and services, has put four warehouses up for sale, three of which are located in Spain, through which it hopes to raise €40 million.

The domestic assets are located in Madrid, País Vasco and La Rioja, whilst the fourth asset is located in Belgium. The proceeds from the divestment will be used to continue reducing the debt, according to sources at the company, whose liabilities amount to €190 million. The objective of the company is to reduce that figure by €10 million in 2018, according to Expansión.

In January, Adveo completed another sale in France. On that occasion, the group sold a warehouse to the company IDI Gazeley for €8 million, which, by virtue of the contract, is going to lease the logistics centre to the French subsidiary of the Spanish company.

All of these operations form part of the Strategic Plan for 2017-2029 designed by the group, which seeks to transform the company into “a service platform with logistics solutions adapted to the new reality of the business”, according to the company.

Original story: Eje Prime

Translation: Carmel Drake

Colonial Buys the Egeo Building in Madrid from Lar España for €79.3M

17 January 2018 – Eje Prime

Colonial is continuing to add assets to its portfolio. To this end, the Socimi has just purchased the Egeo building in Madrid from Lar España for €79.3 million, according to a report filed on Wednesday with the National Securities and Markets Commission (CNMV). The Egeo building has a surface area of 18,254 m2, spread over six above-ground floors, as well as almost 400 parking spaces.

Lar is whereby pushing ahead with the asset rotation plan that it announced last year, by divesting those properties that it considers non-strategic properties and whose value-creation plan it has completed, in order to invest in strategic assets, such as shopping centres and retail parks.

Lar España has highlighted that the active management of this latest property, with the incorporation of tenants such as Giorgo Armani and the renovation of Ineco’s contract, as well as investments to improve the efficiency and undertake renovation work, which allowed it to obtain the Breeam quality certificate, have increased the value and potential of the building.

This is the second divestment that Lar España has undertaken after announcing in September the sale of its office building on Calle Arturo Soria in Madrid for €32.5 million, also to Inmobiliaria Colonial.

Original story: Eje Prime

Translation: Carmel Drake