Cerberus and Deutsche Bank snap up €11b Sabadell assets

Spain's Banco Sabadell has agreed deals with private equity player Cerberus and Deutsche Bank to offload more than €11 bn worth of non-performing assets.

According to media reports, the bank agreed on Thursday to sell assets with a face value of €9.1 bn to Cerberus for €3.9 bn, a discount of 58%.

The US private equity giant has also inked further deals to divest two more real estate loan portfolios with a gross value of €3.3 bn, including a €2.4 bn portfolio which is being sold to Deutsche Bank, plus another package of non-performing loans worth €900 mln to Norwegian fund Axactor.

As of 31 March, Sabadell had some €15 bn of non-performing assets on its books, €7.4 bn of which were foreclosed assets.

Deutsche Bank is understood to have fought off competition from Oaktree and Lone Star to secure the deal, one of the largest toxic loan portfolios the German lender has ever acquired. Last year, it bought a non-performing package from Sareb for €400 mln and another from CaixaBank worth €700 mln.

The Cerberus deal is the fourth largest ever in Spain, behind Blackstone's record buy of Popular's assets for €30 bn, Cerberus' deal with BBVA worth €14 bn, and Lone Star's acquisition of CaixaBank assets for €12.8 bn.


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