Sabadell sells NPL portfolio to Tilden Park for €60M

Sabadell sells NPL portfolio to Tilden Park for €60M

This is the first portfolio of this type to be sold in Spain since March and it was baptised Project Explorer, it has a total 1.000 default credits from SMEs with real estate guarantees, home warranties and an original estimate of 300 million euro, according to newspaper El Confidencial.

This portfolio, which is being assessed by Deloitte, also received bids from other American funds such as Waterfall, Marathon and D. E. Shaw.

Winning fund Tilden Park has been operating in the country for at least one year. It premiered in December last year when it acquired the so-called Proyecto Kingfisher, also an NPL portfolio with 2.500 dwellings, from Coral Homes for between 100 and 150 million euro.

For Sabadell, this sale is in line with its plans for the future which include reducing costs and exploring mergers, for which it hired Goldman, BBVA and Kutxabank, according to the same newspaper.

During its latest biannual results presentation, Sabadell noted that its net profit was 145 million euro, around 72.7% less y-o-y, after adding the provisions for a total of 1.089 million euro (968 million euro excluding subsidiary TSB) required by the IFRS9 models’ updates which incorporate the new macroeconomic scenarios generated by Covid-19.

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