Spanish bad bank hires kpmg for first sale
The bank, which was created last year to help sell off toxic real estate assets from troubled lenders, has hired KPMG to market the group of homes, located in Andalusia and Valencia, Bloomberg reports.
The sale, called “Project Bull”, is considered a litmus test of the market’s ability to still attract investors. The bank will be targeting institutional investors at first, offering the homes in bulk to attract those looking for yields.
“Success on the first sale would be a signal to other investors that there’s an opportunity here, but this is a big hurdle,” commented Lee Tyrrell-Hendry, a credit strategist at Royal Bank of Scotland Group Plc in London. “Investors are looking for yield and Spain is one of the few areas you can get it, but that is because there are still huge risks and the economic outlook is still weak.”
Bids are due by 18th July on the properties, which could be worth a total of €200 million, anonymous sources with knowledge of the auction told Bloomberg.
Firms who are reportedly interest include Leon Black’s Apollo Global Management LLC, billionaire Wilbur Ross and Colony capital LLC.