UK firm buys loans from Spanish bad bank

Spain's bad bank Sareb has sold a portfolio of performing loans with a face value of €90 mln to UK independent investment manager Hayfin Capital Management.

Hayfin, which was set up in 2009 by Richard Hayden and Tim Flynn, two ex-directors of Goldman Sachs, has acquired the loans which were part of the larger Klauss portfolio for an undisclosed discount to value.

Hayfin currently manages €5.4 bn of assets and has recently raised €1.8 bn in capital to invest in debt opportunities across Europe.

Cuatrecasas, Gonçalves Pereira advised Hayfin Capital Management on the deal while DLA acted for Sareb.

The sale follows Sareb's disposal in November last year of the Fado loan package with a face value of €80 mln to Bank of America Merrill Lynch.

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

The loans are securitised against the Alvia business park in Pinar de las Rozas near Madrid, as well as the Paseo del Arte and Barceló Manoteras hotels, also located in the Spanish capital.

Sareb was set up in 2012 following the transfer of some €50 bn of toxic real estate assets owned by nine major local lenders. The new entity bought the bad assets - in large part loans backed by residential real estate - for an average discount of 55%, and financed the operation with treasury bonds.