Spain’s bad bank will sell 437 million euros ($592 million) of loans to Realia Business SA at a 46 percent discount to their face value to Fortress Investment Group LLC, two people with knowledge of the matter said.
At least nine funds expressed an interest in buying the debt from Sareb, as the Spanish bank is known, one of the people said. They both asked not to be identified because the information is private.
Spain set up Sareb last year to absorb 50.8 billion euros in real estate assets from lenders including the Bankia group that took state aid. Sareb has raised 1.7 billion euros this year, beating its target of 1.5 billion euros, Deputy Economy Minister Fernando Jimenez Latorre said at a conference in Madrid last month.
A spokeswoman for Madrid-based Sareb declined to comment. A spokesman for Fortress, based in New York, also wouldn’t comment.