Germany's Otto Group has emerged as the buyer of a non-performing loan portfolio secured by German real estate assets with a face value of 鈧�650 mln, PropertyEU has learned.
Germany's Otto Group has emerged as the buyer of a non-performing loan portfolio secured by German real estate assets with a face value of 鈧�650 mln, PropertyEU has learned.
The sale, known as Project Wagner, was initiated by Archon Group, the asset manager of Goldman Sachs, in late 2014. The company hired KPMG at the time to sell the package which includes a total of 600 loans backed by small commercial properties across Germany.
According to well-informed market sources, the loan package traded for a price in the region of 鈧�200 mln.
All parties declined to comment.
Also in Germany, bad bank FMS is believed to have launched the sale of its first European CRE loan portfolio earlier this month. The lender has mandated C&W鈥檚 corporate finance team to sell its entire remaining Spanish and Portuguese commercial real estate loan books, with a combined face value of 鈧�755 mln.
The Project Gaudi package comprises 18 loans secured by 15 assets including the 鈧�400 mln Hotel Arts in Barcelona, a five-star hotel in Cascais, five shopping centres, four business parks in Madrid and Barcelona, a portfolio of 17 self-storage assets; and a number of residential and industrial development sites.
Cerberus, Oaktree and Orion have reportedly bid for the portfolio, with offers at around 40% of face value.
According to FMS鈥檚 2013 annual report, the bad bank has a 鈧�13.4 bn CRE book, including 鈧�5.8 bn, or 43.3%, of German assets and 鈧�1.7 bn, or 12.6% of UK properties.
