Sareb Selects Aedas, Vía Célere & Aelca as the Finalists for its Property Development Plan

18 April 2018 – Eje Prime

Sareb is closing the loop in its casting session to find a property developer with which to partner up to develop its large land bank. Aedas Homes, Vía Célere and Aelca are the three companies that have been chosen by the entity as the finalists of the project to which the bad bank is going to transfer a portfolio of buildable land worth more than €800 million; that will represent its contribution to a non-monetary capital increase, and will see it become a minority shareholder in the chosen property developer.

Sareb’s plan is to enter the residential market hand in hand with an established Spanish property developer and that firm must be listed on the stock market. That final point is important for Vía Célere and Aelca, given that neither of which have rung the bell on the stock market yet, although they both plan to make their debuts before the end of 2019.

The operation being managed by the company led by Jaime Echegoyen is the largest by volume of all of those undertaken during the bad bank’s six years of life; the entity’s balance sheet largely comprises assets proceeding from the banks following the crisis, according to Cinco Días.

Sareb initiated conversations with up to six property developers and has cut the shortlist down to these three. The idea is to choose a strategic partner in the residential market within the next few months.

In terms of the distribution of the land bank that will form part of the project, the plots are located in Madrid, Cataluña, the Costa del Sol, Levante and Euskadi, as well as in some of the provincial capitals in Galicia, Andalucía and Castilla y León, amongst others.

If the project goes ahead, the operation will become the largest ever to be carried out by the entity, exceeding the €553 million that it transferred to Goldman Sachs through Portfolio Eloise.

Original story: Eje Prime

Translation: Carmel Drake

Project Inés: Deutsche Finalises Purchase Of Sareb’s €400M Portfolio

17 October 2017 – Voz Pópuli

Sareb is at a critical point in one of its most important transactions of the year. The bad bank is negotiating with Deutsche Bank regarding the sale of the largest portfolio it has brought onto the market in the last 12 months. The portfolio in question is Project Inés and it was initially worth €500 million, but its final perimeter will amount to €400 million, according to financial sources consulted by Voz Pópuli. Oaktree and Bank of America also participated in the bid until the final round, but their offers were lower than Deutsche Bank’s bid. Sources at Sareb declined to comment.

Those three international investors were the final candidates after dozens of other funds interested in the operation fell by the wayside. One of the last candidates to be ruled out was KKR.

The portfolio comprises unpaid loans secured by residential assets in Madrid, Cataluña, Andalucía and Zaragoza. The inclusion of assets in Cataluña, despite everything that is currently happening in that autonomous region, caused many of the funds to hesitate and deduct value from their bids, according to the financial sources consulted by this newspaper.

These types of operations are key for Sareb to accelerate the rate of asset sales, given that it has been given the mandate of divesting €50,000 million of problem assets within 15 years; that period started at the end of 2012. The latest figures show that the cumulative divestment to the end of 2016 amounted to almost €10,000 million, leaving a balance of €40,134 million on the books.

Other operations

Project Inés is not the only operation that Sareb has underway. It has also put a portfolio worth €400 million on the market through an online platform for funds. On the portal, investors can bid for loans on an individual basis (Project Dubai), like they did with Haya Real Estate last year.

Moreover, it has just put another portfolio, known as Project Tambo, on the market through CBRE. That portfolio contains non-performing loans to property developers, worth €300 million.

Sareb normally accumulates lots of operations of this kind at the end of the year. In 2016, it sold seven portfolios after the summer, for a total combined value of almost €1,300 million. The largest portfolio was Project Eloise, which was awarded to Goldman Sachs.

Deutsche Bank and Bank of America are two regulars in these types of operations. In fact, the German bank already acquired two small portfolios from Sareb at the end of last year, known as Project Sevilla and Project Marina, for a combined total of €160 million.

Original story: Voz Pópuli (by Jorge Zuloaga)

Translation: Carmel Drake

Project Eloise: Sareb Sells NPL Portfolio To Goldman Sachs

23 December 2016 – Debtwire

Sareb has selected Goldman Sachs as the winner for non-performing loan portfolio Project Eloise, in what is the largest transaction so far for the Spanish bad bank, said a person familiar with the situation.

The final gross book value of the portfolio is EUR 600m, the person said. Launched in the fall/autumn, initially the portfolio had a gross book value of over EUR 1bn, as first reported by this newswire. The size changed during the binding process.

Blackstone was the other bidder selected for the binding phase of the process.

The bad loans of the portfolio are backed by residential assets located across Spain. Sareb has been advised by Evercore.

The deal is still pending subject to signing of the contract, but the goal remains to close by year end, the person familiar with the deal said.

The transaction marks a turning point for Sareb, which had focused on sales of small portfolio until now; in 2015, it closed transactions for approximately EUR 520m.

When it was established, Sareb received EUR 50.8bn in assets to dispose off within 15 years. By December 2015, the portfolio had been reduced to EUR 42.9bn, according to its latest report.

Original story: Debtwire

Edited by: Carmel Drake

Blackstone & Goldmans Compete For Sareb’s €1,000M Portfolio

16 November 2016 – Voz Populí

Sareb is witnessing a battle between the two largest investors in the world: the fund Blackstone and the investment bank Goldman Sachs. The two US giants are the only two finalists in the largest asset sale launched to date by the Spanish bad bank.

Project Eloise contains 200 unpaid loans to property developers worth €1,000 million. This is the largest sales process launched to date by the company chaired by Jaime Echegoyen (pictured above). After a year without any operations of this kind, Sareb has reactivated the sale of portfolios in an attempt to boost its accounts for the year, following the downturn in revenues during H1 2016. According to several experts consulted, Sareb may obtain obtain between €300 million and €400 million from this sale.

For Blackstone, it would not be the first agreement with the Spanish bad bank. In recent years, the US fund has acquired several portfolios from Sareb, as well as from several Spanish entities. Blackstone manages its Spanish real estate assets through Anticipa Real Estate, the former CatalunyaCaixa Inmobiliaria, which it purchased from the Catalan savings banks before their sale to BBVA.

The CEO of Anticipa, Eduard Mendiluce, said recently in an interview with Efe that Project Eloise was going to be analysed in detail given its significant appeal. This platform already manages around €10,000 million in problem loans and has a stock of 5,000 homes, many of which are structured in Socimis.

Meanwhile, the strategy pursued by Goldman Sachs is more opportunistic. It participates in occasional portfolio sales and often works in partnership with another fund. In the past, the US investment bank has teamed up with the giant TPG, owner of 51% of Servihabitat, the real estate arm of CaixaBank. Nevertheless, in July, it joined forces with another fund, D.E. Shaw, in an operation to purchase assets from the Catalan entity.

Given its scale, Project Eloise was always going to be reserved for large investors only, such as Blackstone and Goldmans. Even so, eyebrows have been raised in the sector over the fact that none of the other (very active) investors in Spain, such as Oaktree, Bain Capital, Bank of America, Apollo and Cerberus, have made it through to the final round.

Key period

Sareb is putting everything on the line with this operation. This company needs to boost its revenues during the last quarter of the year in order to fulfil its commitment of continuing to repay its debt guaranteed by the State. (…).

The company’s sales decreased by 14% during the first half of the year, from €1,628 million during the first half of 2015 to almost €1,400 million between January and June this year. Sareb still owns assets worth €42,487 million and has debt (with the entities that transferred their assets to it) amounting to more than €43,000 million.

The aim of the company is to move both figures close to €40,000 million by the end of the year. To this end, in addition to Project Eloise, it has also put other portfolios up for sale, including Project Antares, containing debt with eight creditors.

Original story: Voz Populí (by Jorge Zuloaga)

Translation: Carmel Drake