Bain Capital Credit has taken its first step into the Portuguese market with the acquisition of real estate loans that have a total outstanding balance of €476 million from a local bank, as well as loans from a Spanish bank at a par value of €489 million.
The Portuguese portfolio consist of both non-performing and sub-performing real estate loans originated by Caiza Geral de Depositos. Additionally, the portfolio includes repossessed real estate assets and the bulk of the loans were provided to small and medium-sized residential development firms.
A big sell off is expected in Portugal this year as recent estimates valued the amount of non-performing loans (NPL) on banks’ balance sheets at between €30 billion and €40 billion – a ratio of 15 percent, according to Deloitte’s Deleveraging Europe 2016 – 2017 report published last year. Deloitte recorded sales of portfolios with a combined value of €1.8 billion in 2016.
“After having acquired similarly complex portfolios across Europe and around the world, we believe the time is right to expand into Portugal,” said Alon Avner, managing director and head of Bain Capital’s European investment business.
Hipoges and Finangeste will assist with servicing the loan portfolios and Aura REE, JLL and CBRE helped with valuing the assets.
Bain also completed the acquisition of an NPL portfolio with a €489 million par value from Banco Ibercaja. The portfolio is made up of non-performing and sub-performing loans secured against residential development land and real estate assets. It is the ninth acquisition of NPLs the firm has made since 2014.
Further detail on each transaction was not disclosed.
“Spain is one of the most attractive NPL and real estate markets in Europe. This portfolio, with its sizeable exposure to land plots in Spain’s largest cities, is a great opportunity to continue expanding our footprint in its residential development sector,” said Fabian Longo, head of Bain’s European non-performing loan and real estate business.
Servicers Hipoges and Altamira Asset Management worked with Bain on the deal, while Basico, Deloitte Real Estate and JLL provided valuations of the assets.
Earlier this year, the firm acquired an NPL portfolio valued at €364 million, which includes loans to hotels, real estate developers, retail centres and residential properties from an unnamed Spanish bank.