Piraeus Bank S.A. has entered into an agreement with Bain Capital Credit LP in relation to the sale of non-performing and denounced corporate credit exposures, secured with real estate collateral, equivalent to €1.9bn total legal claims or €1.4bn on-balance sheet gross book value.
“This is the first commercial real-estate backed NPE sale taking place in our country and one which Piraeus prepared and executed methodically. It sets the mark and materially contributes to the creation of the secured NPE market in Greece. The Transaction underlines our strong determination to continue de-risking our balance sheet and implementing our capital enhancing plan, in-line with our strategic initiative, Agenda 2020. We are greatly encouraged by Bain's direct investment in Greece, which we read as a strong vote of confidence in the prospects of the newly established NPE market, the recovering real estate prices and the Greek economy overall”, said Christos Megalou, the Group’s Chief Executive Officer.
“We are delighted to continue to strengthen our position in the Greek non-performing credit, a market with circa €100bn of NPEs”, said Alon Avner, a Managing Director and Head of Bain Capital Credit’s European business.
“This investment demonstrates our interest in the market as we are excited to play a part in Greece’s recovery. After having acquired similarly complex portfolios across Europe, this transaction showcases our expertise in executing deals of this magnitude”, added Fabio Longo, a Managing Director and Head of Bain Capital Credit’s European non-performing loan & real estate business.
“We are thrilled to be able to continue returning financially stranded Greek assets to being productive units of the economy, and look forward to further developing the great working relationships we have formed", said Brad Palmer, a Managing Director and Head of Bain Capital Credit’s European operations.
UBS Limited is acting as exclusive financial advisor of Piraeus. Alix Partners and Ernst & Young have assisted in the preparation of data-rooms, real estate valuations and other materials. Shearman & Sterling is acting as international legal counsel and Zepos & Yannopoulos as Greek legal counsel to Piraeus.
Support in executing this deal for Bain Capital Credit was provided by Mount Street, loan servicing specialists; Property Solutions Asset Management and Danos Real Estate provided real estate valuation advice, whilst Kirkland & Ellis, Karatzas & Partners and Andreas Angelidis & Associates provided legal assistance. Other financial due diligence and advisory was performed by Deloitte. Alvarez & Marsal also provided support to Bain.
