Swedish debt management specialist Intrum has reached an agreement to buy 100% of its rival Haya Real Estate, owned by US fund Cerberus, for 140 million euros, the companies announced in a joint statement on early may.
The transaction will integrate Haya into Intrum’s structure in Spain, thus expanding its client portfolio and volume of assets under management. Specifically, Haya manages more than 11 billion euros in 105,000 real estate assets, which will now be added to Intrum’s portfolio. The Nordic firm is listed on Nasdaq Stockholm and is active in credit and asset management. It has a presence in 25 countries in Europe and Latin America, and last year it expanded its presence in Spain by acquiring the 20% stake in Solvia held by Banco Sabadell. The deal announced on Thursday will see the integration of a team of more than 550 professionals. The companies expect the deal to be completed in the third quarter of this year, once it is approved by the regulator. The bondholders, who represent approximately 60% of Haya’s 340.3 million debt, have already given the go-ahead.
The Cerberus fund had long sought to divest itself of the real estate asset manager, which was founded in 2013 in the heat of the real estate crisis to manage Bankia’s assets. The decision to divest from Haya accelerated from 2018, when the company’s IPO for more than €1bn was thwarted. At that time it had more than €39,884 million in assets under management by Bankia, Sareb, Cajamar, Liberbank, BBVA and other financial institutions. And the valuation of the servicer (the anglicism used to describe these companies in real estate jargon) exceeded 1.2 billion.
While the sale did not come to fruition, the outbreak of the pandemic opened a restructuring process as a result of Haya’s financial problems. Last year, the company led by Enrique Dancausa agreed an ERE for 185 employees after losing contracts to manage assets from Sareb and Unicaja. The agreement announced Thursday, the companies say, will strengthen Intrum’s relationship with Cerberus, one of the largest investors in non-performing asset portfolios (real estate and non-performing loans) globally. And it will expand the Swedish group’s business with some of Spain’s leading financial institutions such as BBVA, CaixaBank and Cajamar.
In addition, the company highlights that the purchase addresses one of the organisation’s strategic priorities for 2023, by accelerating its commercial development and strengthening its secured credit and real estate asset management business.
Original Story: El País | Sandra López Letón
Photo: Intrum website
Translation: Prime Yield