31/10/2014 – El Confdencial
German banks wish to cut themselves off the Spanish real estate-related risk. First to take the step earlier this year was Commerzbank that sold €4 billion NPL portfolio called Octopus to Lone Star and JP Morgan.
Now, the bad bank of Germany, FMS Wertmanagement (FMS WM), has put up for sale a €750 million worth of property-backed loans, including the Hotel Arts in Barcelona as one of the collaterals.
The luxury hotel was bought in 2006 by a group of investors, among which one could find Host Hotels & Resorts, the Dutch Civil Servants Pension Fund Stichting Pensionfonds ABP and company Jasmine Hotels, an affiliate of GIC Real Estate, belonging to the Government of Singapore. The loan amounted to €417 million as that time banks did not require any cash payment.
Among the lenders there was Hypo Real Estate, second mortgage bank of Germany which needed bail-out twice. A part of these loans was included in Project Gaudi, named after the famous Catalonian architect, with the Hotel Arts as the gem collateral.
FMS, German counterpart of Sareb, has run the sale with help of Cushman & Wakefield. Apart from the five-star establishment in Barcelona, Poject Gaudi is made up of 18 loans granted for another high-end hotel in Cascais (Portugal), five shopping and entertainment centers, four business parks (for example the one in San Fernando de Henares, Madrid) and Bluespace´s 17 industrial storage rooms scattered around Madrid, Barcelona and Valencia. About one third of the credits are performing, and the rest sub- or totally non-performing.
Original article: El Confidencial (by Agustín Marco)
Translation: AURA REE
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Source: AURA Real Estate Experts