Spain: Forclosures and non-performing loans- Opportunity?

[Javier De la Rosa]

Hi there,

I used to work in a consultancy advising banks and funds buying/selling portfolios of non-performing loans. I am no longer in the NPL industry as I am back to the family business, working on deals of a much smaller scale.

However, I still have few contacts and talking to them, there may still be opportunities to buy small portfolios of non-performing loans in Spain as well as portfolios of forclosed real estate assets.

Would any of you think this could be worth further discussing? What would you be more interested in, NPLs or REOs?

Thanks.

Javier

[Javier De la Rosa]

Hi @Erwin Groenendijk, with regards to the NPL portfolios, we could be talking about several millions. Buying NPLs is a different animal and would not recommend it unless there's an experienced team behind it to properly service the debt.

Regarding the REOs, the portfolio I've had access to is worth €25M+, but assets could be purchased individually. It's a matter of structuring a sub-set of assets that could suit your needs or identifying the number of properties you could be interested in. Then you'd make the offer and the bank could accept or reject the offer. The properties are currently off-market.