The US fund will now pay €250 million for a portfolio of Spanish overdue real estate loans worth € 950 million, acquiring the assets for a discount of between 25% and 30%.
Thanks to this operation, Oaktree will absorve 500 loans to property developers, amongst others, than Sabadell inherited when it purchased CAM. This loans are secured by property developments, retail premises and land, but their borrowers ran aground following the outbreak of the crisis.
According to the news from Catalunya Press, two different strategies are now being pursued: restructure the loan in exchange for a reduction below the price paid (above 25-30%); and/or acquire the assets by legal means and join forces with local property developers (in some cases the same developers whose assets are being repossessed) to carry out the project.
The finishing touches still need to be agreed for the final disclosure of this operation, meaning that it may not be formalised for another month or so.
Thanks to Project Normandy, Sabadell has cleaned up more than €8.000 million of problem assets from its balance sheet, whereby reducing the balance from €26.000 million to less than €18.000 million.
In recent weeks, several other Spanish entities such as Sareb have also closed divestments.
Oaktree buys NPL Portfolio worth € 950 million from Sabadell
