Sankaty Advisors, LLC, the independently managed credit affiliate of Bain Capital, and Starwood Capital Group, a leading global private investment firm, announced that they have acquired, through a controlled affiliate, a portfolio of secured and unsecured loans from BFA-Bankia Group.
The portfolio—which has a par value of €800 million—is made up of two distinct types of loans: one part is secured against hotel collateral in Spain, with a concentration in resort locations; the other is a pool of syndicated and bilateral loans secured against Spanish small-and-medium enterprises, with a mix of collateral including real estate. This is the largest portfolio of such loans to be sold in Spain and is the first of its kind to comprise both hotel and corporate loans.
The Starwood Capital Group and Sankaty teams working together across both portfolios provide a powerful partnership for buying and managing these unique assets.
“We are delighted to be making this portfolio investment in Spain and to further enhance our track record of investing in corporates, operating businesses and real estate in Europe,” said Alon Avner, a Managing Director and Head of Sankaty’s European business, which bought €2.2 billion in loan portfolios from European banks over the last three years. “We view this as one of the most attractive loan portfolios on Bankia’s book, and we are pleased to leverage our scale, flexibility and expertise to support and provide liquidity to these companies operating in challenging market conditions.”
“We are excited about the opportunity to purchase a loan portfolio that includes a significant number of high-quality hotel properties as underlying collateral,” said Peter Denton, Senior Vice President at Starwood Capital Group. “We believe that our deep hospitality expertise and talented asset management team will allow us to help maximize the value of these assets for the joint venture, while also capitalizing upon strong local markets in Spain such as the Canary Islands that have exhibited high growth and consistently robust tourism.”
Sankaty Advisors and Starwood Capital advised by CBRE
Source: Sankaty Advisors