Propertize Said Planning Sale of $4.8 Billion Bad Loans

Propertize BV, the Dutch bank created to unwind soured real estate debt, is planning to offer 4.3 billion euros ($4.8 billion) of assets for sale as soon as next month, according to four people with knowledge of the matter.

The lender will seek to complete the sale in a single transaction, according to the people, who asked not to be identified because the matter is private. Talks will start with investors in October, with bids sought by year-end so that the deal can be completed early in 2016, two of the people said.

“Propertize has designed a wind-down strategy for the period up to 2023,” Wenda Buining, a spokeswoman for Propertize, said in an e-mail. “Other options that can also lead to a complete wind-down, are not ruled out.”

Propertize was given as long as a decade to dispose of the assets when it was set up to manage loans advanced by SNS Reaal NV after the bank was nationalized in 2013. European banks and asset managers offered 74 billion euros of real estate debt and foreclosed property for sale in July as they trim their soured loan books, according to broker Cushman & Wakefield Inc.

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