This week, the sale of ECS’ restructuring funds will enter its second stage, and the bank has already selected the three investors to move forward: Davidson Kempner, Oaktree, and the joint venture formed by Cerberus and Bain, advanced PropertyEU.
During this second stage of the selling process, investors should transform their non-binding offers into firm proposals. Investors can also withdraw their offers without submitting new ones
Sources consulted by ECO stated that investors want, first, to be certain the deal will be closed, regardless of the transaction’s final numbers and there are still doubts that will happen, especially considering the gap between the offers currently on the table and the amount needed to accept them: the banks’ reserve price should be around 1 billion euro and the offers are below 950 million euro, according to the newspaper.
Last February, ECS Capital placed this set of assets on the market, estimated at around 1.4 billion euro, which includes around 20 assets, amongst which several NAU hotels and La Vie shopping centres in Funchal, Guarda, Porto and Caldas da Rainha. If concluded this could be one of the largest deals ever in Portugal.
Amongst the banks exposed to ECS’ funds are Novo Banco, BCP and CGD. Santander and Oitante also own investment units.
Cerberus was advised by JLL in this process. Aura REE Portugal acted on behalf of Bain and Oaktree.
