Spanish bad bank Sareb has reportedly put a non performing loan portfolio with a face value of €2.6 bn on the market in its biggest disposal process launched to date.
According to news reports in the Spanish media, the portfolio - called Project Dune - consists of a mix of secured and unsecured NPLs and is likely to sell before year-end for a steep discount. Generarally, comparable assets are acquired by opportunistic funds at bargain prices representing up 95-97% discounts to values.
The portfolio consists of two sub-packages; an unsecured portion of loans lent to property developers with a face value of €2.4 bn and a property-backed part which includes 115 loans secured against 1,000 residential-led units largely located in Barcelona, Coruña and Madrid. The secured portfolio has a face value of €176 mln.
Sareb has already written down the entire value of the loans and will book a gain on the entire sales price.
The sale, which is being managed by KPMG, is likely to fetch between €125 and €175 mln, according to Spanish press reports.
