Liberbank sells €600M in real estate assets to Bain and Oceanwood funds

Liberbank sells €600M in real estate assets to Bain and Oceanwood funds

The Bank managed by Manuel Menéndez-Menéndez will transfer real estate assets with aggregate gross debt of around €602 million, of which €180 million refers to land and work-in-progress projects, €80 million to tertiary assets, and €342 million to residential products, according to a report to the National Securities Market Commission (CNMV).

In this portfolio of foreclosed properties Liberbank will hold, directly or indirectly, 9.99% of the capital, while Bain Capital Credit will hold 80%, and Oceanwood will hold the remaining 10.01%. According to the Bank, Liberbank has provisions in September 2017 to compensate the impact of the transaction, which, together with the direct sales of €209 million of gross debt of real estate assets in the third quarter, will allow to comply in advance with the goal to reduce the exposure real estate assets.

Liberbank has been working on this key operation for its future since July, together with Alantra, an adviser in the sale of the portfolio and the expansion. Between both they managed to seal the sale despite of the problems caused by the crisis in Catalonia.

The sale of these real estates represents an acceleration in the strategy of reduce exposure of Liberbank. By announcing its expansion, the entity committed itself with the investors to take out of its balance €800 million before the end of the year (in June had around €6,000 million). During the first half of the year has sold through its network €260 million. Only in the third quarter (summer included), he placed flats and plots for €210 million, as explained Menendez at the extraordinary meeting. And now it is about 600 million. In total, 1,045 million.

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