US private equity firm Lone Star has acquired Spanish lender Kutxabank's property management arm Neinor as well as about half the lender's real estate assets for €930 mln in one of the largest property deals of the year.
US private equity firm Lone Star has acquired Spanish lender Kutxabank's property management arm Neinor as well as about half the lender's real estate assets for €930 mln in one of the largest property deals of the year.
Kutxbank said that it will transfer Neinor's staff and assets as well as other real estate operations such as Inverlur, CajaSur Inmobiliaria and Valle Romano to a newly created company which will also be in charge of providing management services to the remaining assets still on the bank's balance sheets.
The lender was advised by N+1 and Deloitte Abogados, while PwC acted for Lone Star.
The sale will allow Kutxabank to focus on its banking business, the Bilbao, Spain-based lender said.
The deal, which is scheduled to close by the end of April, is the second major acquisition completed by Lone Star in Spain this year. Earlier in 2014, the investor teamed up with JP Morgan to acquire Commerzbank's €4.4 bn Spanish commercial property loan portfolio. The offer price is believed to have reflected an average discount of between 25 and 30% to face value.
The sale, codenamed Project Octopus, was one of the largest Continental European loan disposals this year. According to market sources, the loan portfolio contained some of the best quality assets to come to market in the recent past. It includes some 200 credit facilities, including loans backed by around 40 shopping centres owned by renowned companies such as Unibail-Rodamco, Robert de Balkany’s LSGI Group, Testa, and Doughty Hanson.
The portfolio also included offices including Testa’s portfolio as well as hotels and high street units. A majority of the commercial assets are outperforming, sources said.
