Brazil interest rates to hit 7.00% this year

Expectations for 2021 Brazilian inflation and interest rates rose to new highs, a survey of over 100 economists showed, with the central bank’s benchmark Selic rate expected to hit 7.00% by the end of the year.

The central bank has raised borrowing costs to 4.25% this year, and is expected to raise it by at least another 75 basis points on Aug. 4.

Next year’s inflation outlook inched up to 3.8% from 3.75%, the survey showed, creeping further above the central bank’s goal of 3.50%.

The FOCUS survey showed that this year’s growth outlook held steady at 5.3%.

Original Story: Reuters | Staff 
Photo: Photo by Svilen Milev from FreeImages
Edition: Prime Yield

NBG selects DoValue-led consortium as preferred bidder

DoValue revealed that a consortium of the financial company, Bain Capital and Fortress has been chosen by National Bank of Greece (NBG) as the preferred bidder in relation to Project Frontier for a short period of talks.

NBG, Greece’s second-largest lender by assets, is looking to offload a portfolio of soured loans known as Project Frontier.

Earlier, NBG said it was in exclusive talks with the consortium for the sale of non-performing credit.

Original Story: Reuters| Reuters Staff 
Photo: Photo by Michalis Famelis / Wikimedia Commons
Edition: Prime Yield

Santander puts for sale its credit exposure in Hesperia

Santander is negotiating the sale of its credit exposure on the Hesperia hotel group, a 136 million euros loan portfolio, with with several opportunistic funds, such as Apollo, Bain Capital and Bybrook.

According to the Spanish journal El Confidencial, the bank has already received offers for this loan portfolio, which includes eleven of the group’s hotels and offices as collateral.  Led by Santander itself, the transaction is not expected to be heavily discounted, as the loans are up to date with payments. 

The sale represents Santander’s exit from Hesperia’s credit pool. One of the largest hotel groups in the country, in 2014 the company controlled by the Galician Castro Sousa family had to sell assets to meet bank requirements to refinance debt, at a time when the bank was already Hesperia’s main financier. 

At the present, Hesperia is awaiting approval from the State Industrial Ownership Corporation (Sepi) for a 55 million euros aid package to deal with the effects left by Covid-19, which has the tourism and hotel sector as one of the main victims. Specifically, last March the group joined other hotel companies that applied for aid from the Solvency Support Fund for Strategic Companies managed by the Sepi with European resources.

Hesperia has a portfolio of 28 hotels in Spain with a total of 4,500 rooms, as well as four establishments in Venezuela. The group’s expansion plans for 2021 have so far focused on Latin America and the United States. In 2019, Hesperia posted revenue of 137 million euros, in line with the previous year, and made a profit of 15.5 million euros, up from 22 million euros in 2018. 

In recent months, transactions have been carried out on hotels operated by Hesperia on a leaseback basis. In July, the Grifols family, through the company Scranton, acquired the Hesperia Presidente hotel in Barcelona, located on Avenida Diagonal, for 125 million euros (including CAPEX). Likewise, in March 2020, the fund manager Meridia acquired the Hesperia Barcelona del Mar hotel, located on Calle Espronceda in the Catalan capital.

Original Story: Eje Prime | News
Photo: Facebook Santander
Edition & Translation: Prime Yield 

BCP looks for new owners for a €145 million REO and NPL portfolio

Portuguese bank BCP is looking for new owners for a portfolio made of nonperforming loans (NPL) and real estate (REO) in Algarve with a gross value of 145 million euros, according to digital ECO News. 

Most of the assets are connected to the luxury resorts Castro Marim and Monte Rei, with the portfolio in question to be named “Project Green” after the golf camps included in those touristic complexes. It also includes other real estate assets located in Tavira, São Brás de Alportel and Loulé, notes Eco.

According to the same source, the bank lead by Miguel Maia is already in the market taking conversations with interested potential buyers.

Castro Marim and Monte Rei resorts had initially been included in the “Project Ellis”, which sale to David Kempner was completed by the end of 2020. At the time, they were reportedly taken from that portfolio.

With over 400 hectars of land. Monte Rei is located a few kilometres from Vila Nova de Cacela, and includes villas, houses, flats and plots for construction, besides golf courses designed by the American Jack Nicklaus. The Castro Marim resort also has golf courses, villas and individual plots.

Original Story: Jornal de Negócios | Staff
Photo: MBCP website
Edition & Translation: Prime Yield

Foreign funds control a third of all bank loans in Greece

One in three loans owed by households and corporations are already owned by foreign funds, fueling their growing presence and turning them into vital players in economic developments. By the end of the year, in fact, they are expected to control 50% of entire private sector debt.

The sum of the credit system loans, serviced or not, comes to 155 billion euros according to end-March data, with 43 billion euros of that already in foreign hands. By year-end, and after the conclusion of the securitizations planned by the four systemic banks, that sum will rise to 70 billion euros, and is set to grow further next year, which is when the streamlining of banks’ financial accounts will have been completed through the state asset protection mechanism known as “Hercules.”

The increase in the volume of loans being passed onto funds is marked by the completion of National Bank’s transactions for the “Frontier” package amounting to 6 billion euros, the Sunrise 1 and 2 securitizations by Piraeus and the Mexico package securitization by Eurobank within this year.

Alpha and National have planned sales and securitizations worth over 10 billion euros next year.

Original Story: Ekathimerini | Evgenia Tzortzi
Photo: Photo by Markellos P. from FreeImages
Edition: Prime Yield 

Blackstone opens up Aliseda to third parties for land management

The real estate platform is seeking partnerships with developers by offering the structure of the US fund to landowners.

Blackstone is looking to sell the land it has in stock. For that, the US fund will ally with developers through the opening of its servicer Aliseda, which manages a 800 million euros portfolio of land, according to El Confidencial.

The aim is to open up the servicer to third parties through the transfer of the land, taking advantage of its infrastructure to ally with developers. 

The company claims that Blackstone’s infrastructure allows it to offer services at marginal cost. The fund assures that through this new formula it will be able to offer projects to the administrations to increase the supply of housing. 

Blackstone’s land bank in Spain came from Banco Popular, which after its merger with Santander sold it through Aliseda. The fund acquired them after increasing its stake in the servicer to 51%. 

Aliseda has a team of 80 people dedicated exclusively to urban development management in Spain. The first major project where the servicer wants to implement its new strategy is Sareb’s Neo Project, a tender launched by the entity to find a partner to help it manage a portfolio of land valued at 1.12 billion euros, on which it is planning to build 60,000 homes.

Original Story: Eje Prime |News
Photo: BlackStone Linked In
Edition & Translation:
 Prime Yield

House financing funded by savings should reach new record in 2021

In Brazil, home financing funded by savings should reach a new record of R$195 billion (US$37.5 billion) in 2021, according to the latest forecasts form ABECIP (Brazilian Association of Real Estate Credit and Savings).

After breaking records last year, with a volume of R$124 billion (US$24 billion), and also in the first half of 2021, reaching R$97 billion, real estate financing with funds from savings should close the year totalling R$195 billion, up 57% from 2020. 

The projection and data were released by ABECIP and considers both the loans mobilized by end consumers for the purchase of real estate, and those taken out by construction companies for the execution of works.

Original Story: Rio Times| Staff
Photo: Photo by Afonso Lima from FreeImages
Edition: Prime Yield 

CGD, Santander and Novo Bank relaunch NPL sales

Caixa Geral de Depósitos will go ahead with the sale of a nonperforming loan (NPL) portfolio of more than 120 million euros in the second half of the year. 

According to Economico, the Portuguese State owned bank has already launched the sales process of the Mercury Project, a granular portfolio of collateralised NPLs with a total value of 128 milion euros, and which not include NPL from large debtors.

At the same time, the Portuguese diary added, both Novo Banco and Santander Totta are also triggering the sale of their own NPL portfolios. 

Original Story: Jornal Económico |Maria Teixeira 
Photo: CGD Website
Edition & Translation: Prime Yield