Spanish bad bank puts Realia loans up for sale

Spanish bad bank Sareb is seeking a buyer for a package of syndicated loans with a face value of €440 mln, according to local press reports.

The credit facilities, which have property developer Realia as borrower, are part of Sareb's 'Operation Bermuda' aimed at reducing the company's exposure to the Spanish listed property sector.

International private equity firms Centerbrigde and Fortress are rumoured as potential bidders for the package.

Realia is a major Spanish developer largely owned by construction group FCC and lender Bankia. The shareholders are seeking to sell their combined 58% stake, which has a market value of €200 mln.

The move follows Sareb's sale last month of a package of syndicated loans with a face value of €245 mln to a unit of US hedge fund Davidson Kempner Capital. In May, the bad bank also divested syndicated loans granted to Metrovacesa for some €35 mln.

Sareb was set up earlier this year following the transfer of €50 bn of toxic assets from Spain's most troubled lenders. It recently completed its first real estate sale with the disposal of a 51% stake in a €100 mln housing portfolio to HIG Capital’s Bayside Capital arm. The Bankia-repossessed portfolio, valued at €100 mln, included 939 housing units located in Valencia, Andalucía, Murcia, Canarias and Madrid.

The Spanish bad bank is also said to be repackaging a €450 mln portfolio earmarked for sale in smaller lots after the assets failed to attract attractive bids. The portfolio, including seven office properties in Madrid, was put on the market under the code name, Project Corona.

Offers came in too low and Sareb is now understood to be looking for a smaller ticket disposal of four assets.