CaixaBank Said to Market $898 Million of Spanish Developer Loansby
CaixaBank SA is selling non-performing loans totaling 790 million euros ($898 million) made to developers before Spain’s property crash.
Bidders have until mid-June to submit binding offers for the debt portfolio named Carlit and the transaction is expected to close in July, according to a document sent to investors by PricewaterhouseCoopers LLP, which is advising the lender on the deal. An official at PwC declined to comment on the sale, as did a spokesman for the Barcelona-based lender.
Spanish banks are seeking to sell soured real estate debt that has weighed on their balance sheets since the financial crisis. Spain accounted for half the 3.7 billion euros of bad loans and distressed property sales in Europe in the first quarter according to Cushman & Wakefield Inc.
CaixaBank slashed exposure to developers’ loans by 30 percent last year to 9.8 billion euros after selling assets to Blackstone Group LP and Cerberus Capital Management LP. The debt the lender is now seeking to divest is linked to developers concentrated in Catalonia, Andalusia, and Madrid, according to the document.
Non-performing loans and foreclosed properties with a face value of 36.6 billion euros were sold in Spain from 2012 through 2015, according to Cushman & Wakefield. There are still almost 290 billion euros of the assets to be worked out in the country, the broker estimates.