Prisma Capital is hunting for “complex situations” to invest $650 million

Prisma Capital Ltda., the alternative-asset manager created by former Banco BTG Pactual SA partners, is hunting for “complex situations” in Brazil to invest about $650 million raised for its third fund. “We have a flexible mandate that allows us to invest in a range of asset classes and securities, including private or public equities, credit, real estate, companies under bankruptcy protection and and claims,” Marcelo Hallack, a Prisma co-managing partner, said in an interview. “The dysfunctions present in Brazil’s political, legal and tax systems, which chronically result in macroeconomic volatility, also create investment opportunities”, he said.

Brazilian corporations are struggling to access capital amid a steep increase in the nation’s benchmark interest rate, which has soared to 10.75% from 2% a year ago. A virtual halt in economic activity and shrinking capital markets are adding to the pressure, as are Russia’s invasion of Ukraine and Brazil’s looming presidential election in October. Brazil’s economy is expected to grow just 0.5% his year, down from 4.6% in 2021, according to forecasts compiled by Bloomberg. During these kinds of economic cycles, banks typically become more cautious in providing credit, and that increases the demand for the kinds of capital solutions that Prisma can provide, said Lucas Canhoto, a co-managing partner of Sao Paulo-based Prisma.

Prisma has competition in its search for opportunities. Jive Investments, Brazil’s largest distressed-asset manager, plans to raise as much as 7 billion reais ($1.4 billion) for a new fund this year, Guilherme Ferreira, a Jive partner, said in an interview last year. And Mubadala Capital, Abu Dhabi’s sovereign wealth fund, said in February that it’s received commitments of $322 million for its Brazil Special Opportunities Fund I, its first in Brazil, according to a statement. Prisma can invest in any industry, and so far has chosen sectors including infrastructure, energy, real estate, telecommunications, oil, gas and technology. The firm’s funds also invest in legal claims and litigation finance.Prisma was founded in 2017 and has $2.3 billion in assets under management. About 70% comes from institutional offshore investors, including endowments, foundations and sovereign-wealth funds, and 30% is from Brazilian family offices.

Original Story: BloombergQuint| Cristiane Lucchesi 
Photo: Prisma Capital Linked IN
Edition: Prime Yield

Banks tighten corporate lending in January with €7.6 billion less

Spanish banks slightly tightened the criteria for granting loans in the last months of 2021 and this trend seems to have continued at the start of the 2022 financial year, at least for companies, as credit to companies fell by 0.8% month-on-month in January, with 7,669 million euros less.

However, credit granted by financial institutions to companies rose by 1.05% year-on-year, to 931,989 million euros, adding 9,698 million euros as a result of the injection of liquidity measures approved by the government since the start of the pandemic, such as the 140,000 million ICO guarantees to deal with the impact of Covid-19.

Likewise, financing to households and non-profit institutions resident in Spain rose by 1% in January to 700,769 million euros, adding 6,933 million euros in a single year, and managed to hold steady at the start of the year, with just 778 million up (+0.1%) on December, according to data published on Tuesday by the Bank of Spain.

All this after the 2021 financial year closed 2021 with six-year highs in financing to companies (939,658 million euros), while it rose to families per omicron to around 700,000 million euros.

Maintenance of conditions in the first quarter

In the fourth quarter of 2021, the criteria for granting loans would have tightened slightly in Spain across the board, according to the latest bank lending survey of the supervisory body, and the data show that this trend would have continued at the start of 2022, especially for companies.

Banks do not want to make the mistakes of the past and have been gradually tightening the criteria for granting financing, especially in the retail and non-residential real estate sectors, although they have not turned off the tap in these areas, as credit continues to flow but loans are subject to stricter conditions as a precautionary measure to control default.

Looking ahead to the first quarter of 2022, the Spanish institutions surveyed do not expect significant changes in the supply of credit, so they anticipate that lending criteria will remain stable and that demand will grow, albeit at a “very moderate” rate.

Consumer credit falls and mortgages rise

The slight upturn in household credit is due to the increase in mortgage loans, which amounted to 514,738 million euros in January, up 76 million on a monthly basis and 5,289 million on a year-on-year basis (+1). Even so, mortgage credit still represents 73.45% of the total.

Household consumer loans fell by 3.4% month-on-month, with 3,229 million less, to 92,010 million euros, but on a year-on-year basis they rose by 0.5%. This monthly decline may be influenced by the increase in the savings rate, which reached record highs last year, and the pent-up demand that could gradually be uncorked in the coming months. There was also an increase in lending for “other purposes” to 91.237 billion from 87.324 billion in December.

On the other hand, on financing to companies, which leaves behind the maximum levels since 2015 that it had registered months earlier, the decline in loans from credit institutions to companies stands out, as they fell in a single month by 8,288 million euros (-1.7%), to 479,147 million euros, with a year-on-year decrease of 1.2%, as 5,803 million euros less were granted.Debt securities rose 11.2% year-on-year and 0.4% month-on-month to 143.142 billion euros. At the end of the first month of the year, foreign loans had grown by 0.3% year-on-year and were practically unchanged from December, with a total of 309,701 million euros.

Original Story: Economia digital| Sérgio Diago 
Photo: Photo by Pierre Amerlynck from
Translation & Edition: Prime Yield

Novobanco posts record profit od €184.5 million

The Portuguese bank reports its first annual profit ever, a total of €184.5 million.

After accumulated losses of €8.4 billion since the resolution of former BES bank in August 2014, Portugal’s Novobanco finally reached the light at the end of the tunnel by achieving an unprecedented profit of €184.5 million last year.

This positive result compares with losses of €1,329 million in 2020, but does not, however, prevent a new request to the Resolution Fund for €209.2 million.

On the possibility of a new capital injection, the Resolution Fund and also the finance minister, João Leão, had already responded negatively to the bank even though the request had not been publicly announced, so a new dispute between the two parties is expected. And this surges at a time when the contingent capital mechanism ceiling of 3.89 billion, valid until 2026, is about to run out – with this request, another 200 million remain, and there are disputes in the arbitration court in the amount of €170 million.

A year of profits was already forecast for the financial institution, according to the signs that were being given by António Ramalho throughout last year, and which were confirmed quarter after quarter.

The bank justifies the first positive results in its eight-year history with the improvement in the bank’s operating results (with a contribution of €377.7 million), a lower level of impairments and provisions (down 70.4% to 352 million) and and by the recording in 2020 of the 300.2 million loss on the revaluation of restructuring funds.

Original Story: Eco News | News
Photo: Novo Banco Website
Edition: Prime Yield

Greece’s banks and servicers on alert over a new NPL generation

Greece’s banks and bad-loan servicers are on alert regarding the behavior of loans that have entered a government support program that subsidizes the monthly instalments, in order to prevent a new generation of nonperforming loans (NPL).

This concerns the Gefyra 1 program, which provides for the subsidization of loans secured against a borrower’s main residence. Some 82,000 debtors have joined it, with total dues of €6 billion. The state subsidization has been gradually coming to an end since the start of the year, depending on the time of entry into the program.

There is also a similar worry over the 13,000 enterprises that have debts of €5.4 billion and have joined the Gefyra 2 program; their subsidies will end within the year’s first half. Therefore, a sum of €11.4 billion of credit is about to come out of state support.

Addressing the last edition of Fin Forum, National Bank Director General for Corporate and Retail Banking Loan Management Fotini Ioannou noted that banks have not had any indications of delays to date; however, uncertainty from both geopolitical developments and the reduction of disposable incomes due to soaring energy costs and rising inflation requires caution in order to prevent the forfeiture of those obligations.

There were similar concerns expressed by the president of the servicers’ association and chief executive at doValue Greece, Tasos Panousis: He explained that these loans are under close monitoring by servicers, as installments for the servicing of those loans will soon burden only the borrowers.

Kathimerini data show that 67,000 debtors in the Gefyra 1 program have already lost state support, and depending on whether their loan was performing or not, they will have to pay the entire tranche each month out of their own pocket for the next six to 18 months; otherwise, they will have to return the subsidies received to the state.

There is a similar clause for the enterprises that entered the Gefyra 2 program, a provision that bank officials say will serve as an incentive against delays in the repayment of those loans.Ioannou noted that as “Greek banks have set as a target an NPL index below 10% by end-2022, the start of the new bankruptcy code is a significant parameter.”

Original Story: Ekathimerini | Evgenia Tzortzi 
Photo: Photo by Takis Kolokotronis in
Edition: Prime Yield

Household indebtness reaches a 12-year high

The percentage of Brazilian families in debt or with overdue bills in February was reported at the highest level since March 2010, as per data published by the National Confederation of Trade of Goods, Services and Tourism (CNN).

“Reaching 27% of households, default in February was up 0.6 percentage points from January and 2.5% from February 2021. Those who declared not being able to pay their overdue bills or debts, thus remaining in default, also increased month on month, up 0.4 percentage points. The proportion reached 10.5%, the same as February last year”, the CNC stated.

Families who reported having debts due (like credit cards, overdrafts, personal loans, car and house payments) reached 76.6% in February. A year ago, the indebted added up to 66.7%, 9.9 percentage points below the current number.

Credit card

Credit card indebtedness showed the first shrinkage among indebted people since February 2021, but remains the main debt type of 86.5% of all indebted families. The indicator is 6.5 percentage points below February 2021 and also 7.9 percentage points higher than February 2020, before the Covid-19 pandemic crisis.More expensive credit in Brazil and the fragility detected in the labor market should continue to affect indebtedness dynamics and default among consumers, especially in a year with uncertainties brought about by the general elections».

Original Story: Agência Brasil| Agência Brasil 
Photo: Photo by Bruno Neves from
Edition: Prime Yield

Banks cleaned off €128 billion in real estate related toxic loans since 2015

Spanish banks have taken off their balance sheets some 128 billion euros in bad loans related to real estate since January 2015, according to the consultancy firm Debtwire. They have some €47 billion left, 27% of what they accumulated six years ago. The default rate in this period has plummeted from 12.5% to 4.3%, according to the Bank of Spain.

The managers of Spanish financial institutions set themselves the great mission of eliminating toxic assets from their balance sheets. The amount stood at around €175 billion seven years ago, so they still hold 27%. This figure does not include the €51 billion, including loans and real estate, that Spain’s bad bank Sareb absorbed from the banks that received aid between 2012 and 2013.

Amongst the latest largest portfolios put for sale, there are those from Santander, BBVA and CaixaBank; accounting for a nominal amount of around €3,500 million. A common formula used by financial institutions to reduce non-performing assets is to transfer them to so-called servicers, specialised in this task. Haya Real Estate (controlled by Cerberus), Solvia (Intrum), Altamira (doValue), Servihabitat (Lone Star), Aliseda (Blackstone) and the Spanish firm Hipoges stand out among these companies.

But there have also been sales of NPL portfolios, and of pure and simple bricks and mortar assets , in bilateral transactions, with large institutional investors acquiring these assets with price discounts of up to 90% off its nominal value in the most extreme cases. Institutions prefer to pocket a small amount of these loans as long as they do not allocate resources to their collection.In the best cases, they can even release provisions that they had been setting aside, which are directly recorded in the profit and loss account. The NPL ratio has plummeted to one third of the level at the end of 2014 thanks to the measures taken. But even so, the ratio is more than double the 2.1% recorded on average in the sector in Europe.

Original Story: Cinco Dias | Pablo Martín Símon / Ricardo Sobrino 
Photo: Photo by Svilen Milev in
Translation and Edition: Prime Yield

Portuguese are depositing more in banks

In January, €173.4 billion were deposited in Portuguese banks, almost €500 million more than in December.

In January 2022, the stock of deposits reached a record value of €173.4 billion, almost €500 million more than in the previous month, which represents an increase of 6.3%, according to data released by the Bank of Portugal (Bdp).

“At the end of January 2022, individuals had deposited €173.4 billion with resident banks, and companies €60.5 billion. During the month of January, these deposits grew by 6.3% and 17.4%, respectively, compared to January 2021”.

This means that the Portuguese have never entrusted so much money to banks as they do now, even though the remuneration offered by this type of applications is very low, writes ECO, noting that this is a trend that has accelerated with the pandemic.

Original Story: The Portugal News | TPN
Photo: Photo by Magda S from
Edition & Translation: Prime Yield

Fierce competition for Project Ariadne bidding

The battle for the “Ariadne” nonperforming loans (NPL) portfolio is going to be fierce and involves some major names, according to some Greek press.

The bad-loans package that PQH has put up for grabs – with an accounting value of €5.2 billion – has led to important alliances, as the consortiums of Bain with Fortress and doValue on the one hand, and of Davidson Kempner with Cepal on the other, have now tabled a joint bid.

Offers were submitted last week, Kathimerini understands, and the joint bid must rival that by Intrum, which has entered the running in cooperation with Cerberus, according to the same sources.

The coalition of the biggest funds that are active in Greece is explained by the fact that “Ariadne” is the biggest loan portfolio that has ever been put up for sale in the country, and its acquisition would require sizable funds from candidate buyers. 

Notably, the nominal value of this NPLs package, i.e. the requirements with the interest, add up to some €13.9 billion.The main reason that competition is so fierce for this portfolio is that its loans are secured on properties worth a combined €7.4 billion, which is why the starting price PQH has set is close to €800 million, according to sources.

Original Story: Ekathimerini | Newsroom 
Photo: PQH Linked In
Edition: Prime Yield

BRB seeks buyers for a R$ 1.2 billion NPL portfolio

The Banco of Brasília (BRB) ended 2021 with a profit of R$608 billion, representing a 35.2% growth from the net results recorded a year before and reaching its best result ever.

In a statement, the banks explains that “the result reflects BRB’s expansionary strategy throughout the national territory, with an increase in its range of products and services and a diversification of its customer base”.

In 2021, the annualized return on average equity was 26.6%, above the market average. Revenues from services rendered increased by 15%.

“Even in an adverse context, marked by the worsening of the Covid-19 pandemic, BRB continued to act on the front line in the execution of public policies and granting credit to those who needed it most”, BRB’s president, Paulo Henrique Costa, says.

The bank ended 2021 with a costumer base of 3.5 million, compared with the 639,000 costumers from December 2018. Recently, in February 2022, the bank had already broke the 4 million costumer mark.

Its credit portfolio reached R$ 21.8 billion by the end of the Q4 2021, in an increase of 34.4% compared to the same period of 2020 and of 5.2% from the previous quarter.. The main highlight was real estate credit, whose balance reached R$ 4.5 billion, showing an annual growth of 81.9%. 

It’s nonperforming loans (NPL) rate stood at 2.47% by the end of the second semester of 2021, increasing by 0.79 percentage points from December 2020, due to an increase in operations with higher level of risk amid the bank’s credit portfolio.

Original Story: BRB|Press
Photo: Banco de Brasilia Facebook
Translation and Edition: Prime Yield

BCP completed the sale of NPL portfolio “Lucia”

Portugal’s BCP bank has completed the sale of the nonperforming loans (NPL) portfolio named “Project Lucia”, made up of bad loans with a nominal value of 60 million and real estate assets worth 50 million euros. According to Jornal Económico, the buyer was LX Partners (in partnership with Cabot).

BCP will continue its efforts to clean up its balance sheet. “We will continue to go to the market and carry out operations”, said Miguel Maya when asked if they were going to sell NPL portfolios once again.

The bank recorded a 543 million euro reduction in Non-Performing Exposure (NPE) by 2021, with a 485 million euro reduction in domestic activity. This reduction in NPE, gives “continuity to the successful strategy of disinvestment in NPE implemented by the Bank in recent years”, says the institution.

The group’s NPE ratio for loans and advances to customers stands at 4.7%. In the results presentation, the bank revealed that by 2021 the NPE ratio as a percentage of the total loan portfolio continued to evolve favourably, having decreased from 5.9% at the end of 2020, to 4.7% at 31 December 2021, highlighting the contribution of domestic credit, whose NPE ratio fell from 6.1% to 4.7% in the same period.  Also with regard to coverage indicators there was a general improvement in the last year (to 68%), highlighting the performance of the activity in Portugal, whose degree of NPE coverage by impairments, increased from 63% at the end of the previous year, to 68.5% at 31 December 2021.

Regarding the net portfolio of properties received through recovery, it decreased 32.8% between December 2020 and December 2021.

The value of the portfolio, calculated by independent valuers, is 32% above its book value, the bank said.

BCP sold 1,677 properties in 2021 (2,414 properties in 2020), with the sale value exceeding the book value by 22 million euros.

The bank posted annual profits of 138.1 million, down 24.6% on the previous year. BCP’s return on equity remained very low and far from the management’s target. In 2021 it did not exceed 2.4%, well below the cost of capital.

Original Story: Jornal Económico| Maria Alves 
Photo: Millennium bcp website
Translation & Edition: Prime Yield

Spain’s NPL ratio at its lowest since 2008

Spanish banks are keeping the nonperforming loans (NPL) ratio of their loan portfolio stable and are facing the first quarter of the year with a positive outlook. Specifically, the NPL ratio for loans granted by banks ended 2021 at 4.29%. The NPL ratio has not been at such a low level since the end of 2008, when it ended at 3.37%. On a monthly basis, this is the lowest NPL ratio since March 2009, when it stood at 4.26%.

According to data published by the Bank of Spain, the outstanding loan portfolio at the end of December totalled 1,223 trillion euros, as total credit in the sector fell by 0.06%, slightly down from 1,227 trillion the previous month, and the total volume of doubtful loans fell by 4.77% to 52,531 million euros, some 60 million less. Compared with the end of 2020, the NPL ratio fell from 4.51% at that time to 4.29% in December 2021 and the balance of NPL fell by more than 2.6 billion euros.

The NPL ratio of banks, savings banks and cooperatives fell in December, from 4.22% in November to 4.21% at the end of 2021, also its lowest level since March 2009. The December rate was unchanged from a month earlier, with a 0.27% decline in the sector’s total lending and a 0.11% drop in the balance of non-performing loans in the last month of the year. This fall in deposit institutions’ NPL occurred despite the fact that the loan portfolio fell slightly, to 1.173 trillion, thanks to the fact that the balance of defaults did so to a greater extent, to 49,361 million.

Meanwhile, the NPL ratio of financial credit institutions stood at 6.89% at the end of 2021, its highest level since August 2020, with NPLs at 2.948 billion, up from 2.737 billion in November, and a loan portfolio that grew to 42.783 billion, up 38 basis points on the year and 33 basis points from the previous month.

With regard to the provisions of credit institutions – the so-called capital buffer with which institutions face possible impairment or insolvency – these broke in December with three consecutive months of decline and rose to 38,504 million at the close of the 2021 financial year, a decrease of 1,339 million (-3.36%) compared with a year earlier, but an increase of 227 million (+0.59%) compared with November. Provisions for deposit institutions as a whole stood at 36,083 million in December, down 1,214 million in the year (-3.25%) but up 250 million in the month (+0.7%).

The figures offered by the Bank of Spain include the methodological change in the classification of Financial Credit Establishments (EFC), which since January 2014 are no longer considered within the category of credit institutions. Excluding the change, the NPL ratio would stand at 4.4%, since the credit balance was 1.191 trillion euros in December, excluding the credit of the EFCs.

Original Story: La Razon |Javier de Antonio
Photo: Photo by Victor Iglesias from
Translation & Edition: Prime Yield

Credit granting grew 9.9% in January

The annual growth rate of total credit extended to the domestic economy stood at 9.9% in January 2022, compared with 10.2% in the previous month, the Bank of Greece said.

It also said the annual growth rate of total deposits stood at 8.1%, compared with 8% in the previous month, and deposits placed by the private sector decreased by €2.232 billion in January 2022, compared with an increase of €4.26 billion in the previous month.

The central bank reported that the monthly net flow of total credit was positive by €1.52 billion last month, compared with a negative net flow of €1.5 billion in the previous month. In January, the monthly net flow of credit to the general government was positive by €2.8 billion, compared with a negative net flow of €3.416 billion in the previous month; the annual growth rate decreased to 32.7% from 33.4% in the previous month.

The annual growth rate of credit to the private sector decreased to 0.9% from 1.4% in the previous month.

The monthly net flow of credit was negative by €1.3 billion, compared with a positive net flow of €1.92 million in the previous month.

Original Story: Ekathimerini | Newsroom 
Photo: Photo by Svilen Milev in
Edition: Prime Yield

New consumer credit increases 11.5% in 2021, but still bellow pre-pandemic figures

New consumer credit operations increased by 11.5% in 2021 compared to the values recorded in 2020. According to data released the Bank of Portugal (BdP), new credit granted last year reached €6.5 billion, which compares with €5.8 billion financed the previous year. 

Despite the recovery, the amounts are still 13.6% below the operations carried out in 2019, before the pandemic, when the amount reached €7.6 billion, a record breaking year.

As for December’s figures, these reveal a drop of 6.4% compared to the previous month, in which the €600 million threshold had been exceeded for the first time since February 2020. In the last month of the year, 591.3 million euros were granted to consumers. The amount represents an increase of 24% compared to the same month in the previous year. 

Personal credit represents the biggest slice of the cake. 269.6 million euros were lent for this purpose, equivalent to 45.5% of the total.

This portion includes credit for education, health, renewable energy and equipment leasing, which totalled €10.3 million, up 47.1% on December 2020, and down 19.1% compared to November. 

It also includes other personal loans (no specific purpose, home, consolidated and other purposes), which totalled €259.3 million, equivalent to a year-on-year increase of 45% and a monthly drop of 9%.

In total, 38,920 new personal loans were granted, down 13% on November. 

New car loans totalled €226 million, equivalent to 15,001 new operations, up 0.7% on November. 

In turn, credit cards, credit lines, bank current accounts and overdraft facilities reached €95 million of financing. 68,415 new operations were signed, down 14.6% on the previous month.

Original Story: Jornal de Negócios | Ana Sanlez
Photo: Photo by Ricardo Gurgel from
Translation and Edition: Prime Yield

Banco do Brasil forecasts profit growth of 24% in 2022

Brazilian state-controlled lender Banco do Brasil SA forecasts that its 2022 net income is likely to rise by up to 23.7% from last year, despite a slower loan book growth.

Banco do Brasil forecast a recurring net income, which excludes one-off items, between 23 billion reais ($4.4 billion) and 26 billion reais this year, compared to 21 billion reais in 2021.

The bank indicated it plans to weather Brazil’s dim growth outlook with good asset quality, higher net interest income, and sales of financial services.

Loan-loss provisions were estimated between 13 billion reais and 16 billion reais, versus 13.1 billion reais in 2021. Latin America’s biggest economy is likely to post little or no economic expansion this year, hurting consumers and companies.

Loan book growth is also expected to slow down to between 8% and 12%, compared to 19.1% last year, mainly driven by rural loans and consumer lending.

The bank, however, said it expects to post a 4% to 8% rise in fee income, similar to the latest forecasts from brick-and-mortar banks such as Itau Unibanco Holding SA and Banco Bradesco SA  week.  

Still, amid Brazil’s surging inflation, operating costs are likely to go up by a similar percentage rise. In 2021, Banco do Brasil was able to tame inflation and post a rise of only 1.4% in expenses.

Banco do Brasil posted a 60.5% jump in fourth-quarter recurring net income from a year earlier to 5.900 bln reais, beating an average analyst estimate compiled by Refinitiv of 4.810 billion reais.

Profit was mainly helped by loan-loss provisions of 3.790 billion reais, down 26.5% from a year earlier. Its 90-day loan default ratio stood at 1.75%, slightly down from the previous quarter.

Net interest income – a measure of earnings on loans minus deposit cost – rose 4.5% from a year earlier, to 14.801 billion reais.Its return on equity, a gauge of profitability, was 16.6%, up 2.3 percentage points from the previous quarter.

Original Story: Reuters| Carolina Mandl 
Photo: Banco do Brasil website
Edition: Prime Yield

Sareb chooses Blackstone and Hipoges to manage its €25 billion portfolio

Radical change in Sareb’s partners. Spain’s Sociedad de Gestión de Activos Procedentes de la Reestructuración Bancaria (SAREB) has chosen KKR (through its Spanish company Hipoges) and the Blackstone fund (through its asset managers Aliseda/Anticipa) as the new servicers that will manage its €25.3 billion mega-portfolio of real estate assets and loans.

In this way, the bad bank leaves out its traditional partners after calling a tender with which it sought to save costs. Haya (Cerberus fund), Altamira (doValue) and Solvia (Intrum) have lost this mega-contract. In addition, Servihabitat (Lone Star) had already dropped out of the first part of the tender by submitting the most expensive bid.

In the coming weeks, Sareb will finalise the portfolios to be managed by each of the two winners. As of 1 July, they will take over from the outgoing managers. The portfolios comprise 13,300 million in unpaid developer loans and 12,000 million in residential real estate, land and tertiary assets, all of which are toxic assets from the banks during the brick crisis.

On the decision to choose the new servicers, the proprietary directors who represent the financial institutions on the board of directors have not been involved in the voting, according to sources close to the process, and have left the approval in the hands of the chairman Javier García del Río, the independent directors and those of the FROB (dependent on the Ministry of Economy).

The main objective in calling the tender is to reduce the annual bill it pays to the servicers for the management of its portfolio, which has an annual cost of around 160 million. The entity calculates that with the proposals from Hipoges and Aliseda/Anticipa it saves around 20% compared to the contracts signed in 2014 and 10% compared to the one signed with Haya in 2019.

The financial institution has decided to reduce the number of fund managers to two in order to, in exchange for reducing the margins paid, give a greater volume of business to the winners.

The contenders in this tender had to first submit an economic offer, after which Sareb rejected Servihabitat, and a technical offer. The institution chaired by Del Río considers that Hipoges has enormous professional capacity, with the greatest diversification of clients in the country. Of Anticipa/Aliseda (Blackstone companies that have presented themselves jointly), it values their robust capacity to manage large portfolios. “Both have first-class technological platforms to provide an optimal service to Sareb”, according to Sareb.

It is now a complicated process for the losers of the tender, since, given the size of the portfolio under management, Sareb is one of the largest clients in terms of volume for all of them. The project has been supervised by an independent auditor, Mazars, which has validated the integrity and good execution of the process, according to Sareb.

A closing phase is now underway with the two selected bidders. In the event of any setback in the final negotiation, Sareb’s board could decide to move forward with the next candidates in the order of scoring, as all bids have been considered valid.

The bad bank also has other partners for different tasks. In the case of urban development, it has Servihabitat, through its subsidiary Serviland, as manager. For the completion of stalled works, it partnered with Domo, and in the case of residential development, it launched the developer Árqura, managed by the real estate company Aelca (of the Värde Partners fund).

“We are very pleased to have been chosen by Sareb as one of the companies that will manage its portfolio of more than 25 billion euros of real estate assets and loans. It is a great challenge for Aliseda and Anticipa”, say these Blackstone companies, whose CEO is Eduard Mendiluce.

Original Story: Cinco Dias |Alfonso Ruiz
Photo: Sareb website
Translation & Edition: Prime Yield

Greek banks speed up the sale of large real estate portfolios

Large property portfolios, with a total number of more than 3,000 assets and valued at more than €1.5 billion, are about to change hands through deals in the local market, driven by the aim of banks to rid their financial figures of their burden and to boost revenues.

They concern properties lenders have obtained by way of auctions in the last couple of years and whose sale they are now considering, either directly to interested investors or through their real estate management subsidiaries.

In the next few weeks Alpha Bank will choose its preferred investor for the sale of a property portfolio worth over €500 million, combined with the transfer of its Alpha Astika Akinita subsidiary. This is the so-called “Project Skyline,” which has attracted four suitors: Prodea Investments with parent company Invel, the Dimand Real Estate-HIG consortium, and investment funds Brook Lane Capital and Davidson Kempner.

Their interest mainly regard the assets to be transferred to Alpha Astika Akinita, which the bank will concede and hold on to a minority stake in. They include some 50 top-quality properties valued at about €280 million, such as the landmark Alpha building on Aiolou Street in Athens.

The investor to be chosen will control both the majority and the management of Alpha Astika Akinita, introducing a business plan to be agreed on in the context of the tender.

Piraeus Bank’s “Project Terra” is even greater in value: The process that started last fall has just entered its second stage, pertaining to the transfer of approximately 2,300 properties with a total value in excess of €800 million, the biggest realty portfolio to change hands in Greece. The package incorporates 125 assets that Piraeus Bank itself uses and have a combined value of €307 million.

National Bank is also planning to sell a package of properties valued close to €100 million over the next few months. The market expects this portfolio to concern mainly residential and possibly some commercial assets, although no final decision on the portfolio has been made yet.

Original Story: Ekathimerini | Nikos Roussanoglou  
Photo: Site Alpha Bank
Edition: Prime Yield