Resolution Property Re-enters Spanish Market With €100M JV

11 March 2016 – Press Release

Distressed luxury portfolio offers residential repositioning opportunity.

Resolution Property is re-entering the Spanish real estate market with a €100m joint venture to reposition a portfolio of luxury residential, hotels and land in Marbella.

The UK-based real estate investor is forming a 50:50 joint venture with a private investment partner to manage an existing €50m portfolio comprising 15 value-add assets in Marbella’s Golden Mile. The joint venture intends to invest up to a further €50m by growing the portfolio through distressed acquisitions and value-add asset management.

Resolution Property will provide expertise in niche residential repositioning, together with retail and leisure know-how, to complement its joint venture partner’s proven track record in the local area.

Michel Nangia of Resolution Property said:

“Marbella is a sheltered market, sustained by international high net-worth individuals. Furthermore, the wider Spanish economy continues its recovery, with declining unemployment and consistently positive GDP growth over more than two years. Against this backdrop, we have the opportunity to add significant value to this portfolio through an active asset management and refurbishment programme, and then grow the portfolio alongside a strong partner with access to off-market distressed opportunities on a scale enabling a future conversion into a Socimi.”

The joint venture represents the final investment for Resolution Real Estate Fund IV. It follows Resolution Property’s delivery of similar residential repositioning ventures in Switzerland and Denmark.

Resolution Property was an active investor in Spain and Portugal’s retail markets in the mid-2000s. The Marbella venture represents its return to the Spanish market, which it will also target for further acquisitions on behalf of its next fund, Resolution Real Estate Fund V, in which China’s Fosun Property will be the cornerstone investor.

Original story: Press Release

Edited by: Carmel Drake

Project Gaudí: Oaktree Acquires Reduced Portfolio For €260M

25 June 2015 – CoStar Finance

Oaktree Capital Management has finalised the purchase of a reduced non-performing loan portfolio from FMS Wertmanagement (Project Gaudi) paying around €260m in cash, after a back bid sale of a Bilbao shopping centre to Grupo Lar and the removal of two loans prior to transaction close.

According to CoStar News, Grupo Lar, the Spanish developer and investor, has acquired the 1.35m sq ft Megapark Barakaldo shopping centre in Bilbao, in a back to back bid for just over €150 million.

Megapark Barakaldo was previously owned by Resolution Property, who acquired the retail centre for more than €200 million in January 2006, from Arcona Iberia and its joint venture partners, financed by Hypo Real Estate Bank International and the Royal Bank of Scotland. Resolution Property sold Megapark Barakaldo to another investor in 2012, which inherited the encumbered debt.

In addition, FMS Wertmanagement removed two loans from the original €735 million portfolio, contraining 18 NPL loans (Project Gaudi):

1) The first was a loan securing the circa 333,700 sq ft Plaza Éboli shopping centre in Pinto in the south of Madrid. HIG Capital recently acquired Plaza Éboli from Doughty Hanson, the UK private equity firm, for €30m, repaying the loan back to FMS Wertmanagement at par.

2) The second was a combined €125 millioin investment, development and VAT financing facility, granted to Bluespace, formerly known as Blue Self Storage, in July 2007. It was used to fund the acquisition of 17 self-storage properties – in Barcelona, Madrid and Valencia. FMS Wertmanagement has retained that non-performing loan.

These two removed loans are thought to account for an unpaid loan balance of around €100 million in aggregate. This reduces the original nominal value of Project Gaudi’s NPL portfolio (€735 million) to an unpaid balance of €635 million.

CoStar News understands that Oaktree paid €410m for the slightly slimmer Project Gaudi, reflecting a discount of 35.4%.

Furthermore, the immediate back bid purchase of Megapark Barakaldo by Grupo Lar for circa €150 millions implies the net price that Oaktree paid was €260 million, which was likely paid on an all-cash basis by Oaktree given the final size of the deal.

FMS Wertmanagement closed the sale of Project Gaudi with Oaktree two weeks ago. This was the German bad bank’s maiden NPL portfolio sale in Europe.

CoStar News understands that FMS Wertmanagement is considering two further country-focused loan portfolio sales for the bad bank’s Netherlands and Italian sub and non-performing loans. (…)

Original story: CoStar Finance (by James Wallace)

Edited by: Carmel Drake