14 July 2015
Reporter: Theo Andrew

Bain Capital picks up €1 billion of bad Spanish and Portuguese real estate loans

Bain Capital Credit has acquired Spanish and Portuguese sub-performing loans, primarily in real estate debt, totalling almost €1 billion.

The group purchased €489 million worth of the bilateral loans from Spanish bank Banco Ibercaja and a further €476 million of real-estate secured loans from Portugal’s state-owned Caixa Geral de Depósitos.

The Portuguese deal, which is Bain’s first in the country, also includes repossessed real estate assets, ongoing residential developments and industrial and commercial assets.

Alon Avner, head of Bain Capital Credit’s European business, said: “After having acquired similarly complex portfolios across Europe and around the world, we believe the time is right to expand into Portugal and look forward to completing more transactions in the future.”

The purchase comes as economic recovery continues, and the risk of investing in Portugal decreases It also highlights rising demand for non-performing assets on the continent.

In March, the European Commission backed a €2.5 billion cash injection into Caixa Geral de Depósitos from the Portuguese Government.

This deal marks Bain Capital’s ninth portfolio acquisition in the Spanish market since 2014. The collateral on the Spanish loans is mainly focused on residential, development and real estate assets.

Fabio Longo, head of Bain Capital Credit’s European non-performing loan & real estate business, said: “We continue to believe Spain is one of the most attractive non-performing loan and real estate markets in Europe. This portfolio, with its sizeable exposure to land plots in Spain’s largest cities, is a great opportunity to continue expanding our footprint in its residential development sector.”

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