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Commerzbank plans to sell another €6.5bn of commercial real estate debt by the end of next year after reducing its loan book by 17% this week. The German bank will begin further reductions next year to its current €14.5bn commercial property loan book and expects to have it down to about €8bn by the end of 2016.
Santander is selling a €170m portfolio of hotel loans, Project Formentera. The loans are backed by 17 properties located across Spain. Twelve of the 17 hotels are in the southern city of Valencia and tourist hotspot the Canary Islands.
Bondholders have consented to a restructuring of £1.5bn of debt secured by a 35 –strong portfolio of General Healthcare Group's UK private hospitals. This brings to a close nearly two years of negotiations among borrowers, bondholders and lenders to refinance its loans. The new structure involves group of junior bondholders injecting £175m and taking control of the assets. Senior lenders will be partially repaid; amoritisation is increased and the interest rate on senior and one junior tranche is being increased. A long-dated interest rate swap – whose mark-to-market value is currently around £675m – is being partially crystallised and replaced by new hedging arrangements.
Commerzbank has increased the size of a German non-performing real estate loan portfolio it is bringing to market in the latest disposal from its former Eurohypo business. The bank is set to release the data tape containing loan and asset level data relating to the NPL portfolio to prospective bidders at the end of this week. It is expected to reveal a portfolio with an unpaid balance of between €900m and €1.1bn according to a source close to the bank.
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