DebtX hires SAREB head to advise on non-performing loans

The Debt Exchange (DebtX) has appointed Luis Martin as a senior advisor in Europe.

Martin joins from SAREB, Spain’s national bad bank, where he was a member of the board and head of transactions. He oversaw more than $30bn of loan sales, including some of the industry’s largest disposals, during the past two years.

Prior to joining SAREB, Martin was chairman and chief executive of BNP Paribas’s real estate consulting firm in Spain.

At DebtX he will be responsible for working with institutions to reposition their balance sheets and reduce non-performing loans. Boston-based DebtX operates an online marketplace for buyers and sellers of commercial real estate and specialty finance debt.

Spain has seen a number of large loan portfolio sales this year with more to come. Spanish lender Bankia is looking to sell a €4.2bn real estate owned (REO) portfolio, the largest sale of its type ever, called Project Big Bang and SAREB has Project Silk, comprising small unpaid loans to property developers, amounting to €1bn up for grabs.

“As we enter the next phase of bank restructuring, Spanish banks will examine all of their non-performing and non-core positions with the goal of maximizing proceeds,” said Martin.

“Once these banks have removed these assets from their balance sheets, they will be positioned to originate more loans and drive the Spanish economy.”

Gifford West, managing director and head of DebtX’s international operations, said: “Luis Martin is a highly respected banking and real estate executive who brings extensive knowledge of the Spanish market, its key players, and the loan sale process.”

“Luis deepens the DebtX team and expands its ability to serve financial institutions throughout Europe, where DebtX has been valuing and executing loan sales for the past eleven years.”

A record €99bn of non-core real estate exposure in Europe’s banks is currently or soon to be up for sale, according to Cushman & Wakefield’s latest loan sales market report.