Bain buys €1bn NPL portfolio in Spain & Portugal

By James Buckley - Wednesday, July 12, 2017 10:47

Bain Capital has bought close to €1bn of non-performing and sub-performing loans across Spain and Portugal.

Bain Capital Credit has acquired a €476m portfolio of non-performing and sub-performing loans, as well as some repossessed real estate assets, from Caixa Geral de Depósitos S.A., Portugal's largest bank by assets. The portfolio acquisition is the firm’s first in Portugal.

The portfolio is primarily made up of bilateral real estate secured loans to small and medium enterprises, as well as to larger corporations. The collateral securing the loans includes a wide range of asset types, including finished and work-in-progress residential developments, industrial & commercial real estate assets, as well as land plots.

Bain Capital Credit has also acquired a €489m loan portfolio from Banco Ibercaja SA, representing Bain’s ninth portfolio acquisition in Spain since 2014.

The portfolio comprises non-performing and sub-performing first lien bilateral loans to real estate developers. The collateral securing the loans is mostly residential development land and real estate assets.

“We are excited about entering the Portuguese non-performing loan market with this acquisition,” said Alon Avner, a Managing Director and Head of Bain Capital Credit’s European business. “After having acquired similarly complex portfolios across Europe and around the world, we believe the time is right to expand into Portugal and look forward to completing more transactions in the future.”

“This investment demonstrates our interest in the market, and our expertise in executing complex transactions that require dedication and close collaboration with the seller,” added Fabio Longo, a Managing Director and Head of Bain Capital Credit’s European non-performing loan & real estate business. “We see the potential for further investment in Portugal, particularly in the real estate and non-performing loan markets.”

Support in executing these deals was provided by Hipoges and Finangest, loan servicing specialists; Aura REE, JLL and CBRE, real estate valuation providers; and Uría Menédez Proença de Carvalho, a local legal firm which assisted Bain Capital Credit.

“We are excited about the opportunity to strengthen our position in the development sector with this investment,” added Avner.

“We continue to believe 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 Fabio Longo, a Managing Director and Head of Bain Capital Credit’s European non-performing loan & real estate business.

Support in executing this deal was provided by Hipoges and Altamira Asset Management, loan servicing specialists; Basico, Deloitte Real Estate and JLL real estate valuation providers; and Allen & Overy legal counsel.

jbuckley@costar.co.uk

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