JV Cerberus and FinSolutia buy €400 Mn REO portfolio from Novo Banco

Following its goals for cleansing up the NPA (Non-Performing Assets) from its balance sheets, the Portuguese bank Novo Banco has just closed the sale of a further REO (Real Estate Owned) portfolio with a gross value of €400 million. The investment fund Cerberus together with Finsolutia are the new owners.

Named “Sertorius Project”, the portfolio includes almost 200 assets, of which two thirds are non-identified lands, besides the industrial, residential and commercial properties correspondent to the other third. Most of the assets are located either in Lisbon or Setubal areas.

The bank led by António Ramalho keeps following a strict strategy of non-rentable assets’ reduction by alienating non-performing loans (NPL) and real estate portfolios as a result of the European regulators’ requirements. Over the next months, Novo Banco expects to close a deal on “Nata 2 Project”, which is a €3 Bilion NPL portfolio and the biggest ever sold in Portugal, as ECO confirmed in exclusive.

Regarding Nata 2, Bain, KKR Davidson Kempner moved on to the second phase of the tender, which is the binding offer. Bloomberg wrote that Bain would be the best-placed contender, right in front of Davidson Kempner.

Both operations need to be approved by the Resolution Fund as they must respond for the losses related to portfolio alienation. This year, the fund led by Máximo dos Santos was called to inject more 1,145M€ under the clause of contingent capital mechanism in the 2017 contract with the American Lone Star for 75% of the bank.

Original Story: Eco News
Photo: Novo Banco site
Edition:Prime Yield