Apollo, Lone Star, Fortress, Centerbridge and Pimco shortlisted for €1b Greek NPLs

Greek lender Alpha Bank has shortlisted US groups Apollo Global Management, Fortress Investment Group, Lone Star Funds, Pimco and Centerbridge Partners for the second round of bidding for its €800 mln bn Project Jupiter non-performing loan portfolio, PropertyEU has learned.

The package, including loans with a nominal value of €800 mln and repossessed assets worth €50 mln, received 10 non-binding offers in mid July from the same parties as for the bigger Project Amoeba package which was sold to Bain Capital earlier this year for over 20% of the nominal value. Other contenders were said to include a string of US asset managers and private equity investors such as Oaktree Capital, KKR and Bain Capital.

Binding offers for the portfolio are due by September 24, with a likely extension to the end of the month.

PropertyEU reported in early May that the portfolio was about to hit the market in Greece’s second major property-backed loan sale by a local bank. The package includes a total of 1,700 properties with over a third (36%) of hotel properties, a quarter of residential assets, and 23% of commercial properties in an attempt by the landlord to attract international investors. The real estate collateral is valued at around €500 mln.

Greek banks are saddled with some €100 bn of NPLs and are under growing regulatory pressure to tackle their bad debt problem. Earlier this year Bain Capital emerged as the buyer of the Amoeba non-performing loan portfolio with an on-balance sheet gross asset value of €1.45 bn in Greece's first major property-backed sale by a local bank.

UBS was the exclusive financial advisor of Piraeus for the transaction, which involved a mixed bag of secured and unsecured loans with a face value of €1.5 bn, according to experts. The secured portion of the portfolio was backed by €467 mln worth of commercial, residential and industrial real estate across 1,350 largely vacant assets and is in addition to around €200 mln of unsecured loans, for a total representing 40% of the loans’ face value.


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