Bain, Apollo, Fortress shortlisted for €1.9b of Greek NPLs

Greek lender Alpha Bank has shortlisted US groups Apollo Global Management, Fortress Investment Group and Bain Capital for the second round of bidding for a €1.9 bn non-performing loan portfolio, PropertyEU has learned.

The package, known as Project Neptune, includes soured loans secured against around 4,000 real estate assets. The virtual data room opened early this week and Alpha Bank is expected to select an exclusive party by the end of October.

The lender is also moving forward with the disposal of a €1.9 bn securitized pool of Greek non-performing mortgage loans known as Project Orion. Non-binding offers were in last Monday month from several parties including Lone Star, Bain Capital and Pimco.

Under the sale process, which is due to close by year-end, investors are being offered around 95% of the mezzanine and junior notes of the securitization, while the remaining 5% together with the senior tranche with a nominal value of €980 mln will be retained by Alpha Bank.

The portfolio includes some 36,000 loans of 19,000 borrowers with 40% of mortgage properties located in Athens. Alpha Bank's financial advisors are Axia Ventures and Alantra.

Last year Alpha Bank became the second Greek bank to take a major step toward divesting its NPL exposure with the sale of the Jupiter non-performing loan portfolio to Apollo Global Management.

Apollo and joint venture partner IFC paid €337 mln for the package, or 33.6 cents on the dollar for the secured loans which have a gross book asset value of €1 bn and close to fair value (€51 mln) for €56 mln worth of repossessed assets included in the portfolio.

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