Catella advises on five new bank-related mandates

Catella Group is currently advising on five bank-related mandates involving distressed assets or loans, Erik Westerlund, partner at the Stockholm-based adviser told PropertyEU. He declined to reveal the identity of the owners, but said the assets range from small to large portfolios and had a total value of EUR 500 mln. 'We expect transactions to take place within the the next 12 months.'

The new mandates follow hard on the heels of the public auction of the Kefren portfolio which Catella held last month on behalf of special servicer Capita Asset Services (formerly Barclays Capital Mortgage Servicing). In total, the sale of the 146 properties, the biggest property auction ever held in Sweden, generated SK4,104 mln (EUR 450 mln), Westerlund said. The proceeds are 3% less than the SK 4,240 mln (EUR 465 mln) gross valuation made by CBRE in spring this year.

In total, the Kefren auction attracted over 750 bidders Westerlund said, including foreign - mainly UK-based - investors. However, all of the properties ended up in Swedish hands, primarily local private investors and listed heavyweights such as Hemfosa and Kungsleden. Westerlunds expects Sweden to remain a safe haven for foreign investors amid the ongoing eurozone crisis, but said that it could become even more difficult to obtain debt financing. ‘It’s too early to say whether foreign investors will be scared off now, but they still have to place their money. Property still looks good relative to other asset classes.