Deutsche Bank acquires €375m NPL portfolio

The portfolio bought from Sareb, Spain’s ‘bad bank’, consists of defaulted loans secured against residential assets across the country.

Deutsche Bank has acquired a portfolio of non-performing loans with a nominal value of €375 million from Sareb, Spain’s ‘bad bank’.

The portfolio is made up of defaulted loans secured mostly against completed residential properties across Spain, mainly in Madrid, Catalonia, Andalusia and Aragon. Collateral also includes some plots of land and offices under development.

The transaction has been closed following a “competitive” process, enabling the value of the assets to be maximised, Sareb said. Other bidders included Bank of America, KKR, and Oaktree, according to Spanish newspaper Vozpopuli.

“This transaction is consistent with Sareb’s divestment strategy and continues to show the continued confidence in the Spanish market,” said Alfredo Guitart, the bank’s general business director.

Irea acted as financial advisor to Sareb.

In a pilot scheme, Sareb is also selling a pool of non-performing residential loans with a face value of around €400 million. The NPLs are secured by residential properties across Spain, mainly in Madrid, Barcelona, Malaga and Cadiz, plus Galicia and Valencia.

Investors can bid for selected assets, rather than the total pool of NPLs, through a sales channel, in which 30 institutional investors were invited to participate as potential bidders, a spokesman from Sareb told Real Estate Capital in September.

The sale was expected to close by the end of this year or early in 2018.