Bain Capital Credit LP, the credit unit of private equity firm Bain Capital LP, has purchased a €364 million Spanish real estate portfolio from a leading Spanish financial institution, Bain said in an emailed press release Dec. 29.
Spanish financial daily Expansión reported that the financial institution was Banco de Sabadell SA.
The portfolio was made up of nonperforming loans granted to hotel operators, real estate developers, malls and residential real estate assets. It was worth about €364 million, but the price of this type of transaction ranges between 30% and 35% of the portfolio, meaning Bain would have paid about €150 million for the debt, according to Expansión. Several international investment firms, including Cerberus Capital Management LP, were interested in the deal, the newspaper said.
The debt sale is the fourth failed-debt portfolio Bain Capital Credit has bought in Spain and its seventh investment in the country since 2013.
"We continue to find Spain as one of the most attractive markets in Europe," said Fabio Longo, head of Bain Capital Credit's European nonperforming loan and real estate business. "We see the potential for further investment in Southern Europe, particularly in the real estate and non-performing loan markets."