A number of private equity firms have this week submitted first-round bids for Propertize, the €5.2bn (£4bn) Dutch real estate bad bank.
Goldman Sachs with Cerberus Capital Management, working with Valad Europe; Lone Star; Apollo Global Management; and Oaktree Capital Management have all made bids. A shortlist is expected within a month.
The €1.9bn of performing loans in the portfolio is held against property, 80% of which is in Holland, 7.2% in Germany with the rest widely dispersed. The portfolio held against the performing loans is 34% residential, 31% retail, 15% offices and 15% industrial or logistics; the remainder is mixed or other uses.
The sale also includes €3.3bn of non-performing loans and €300m of real estate assets. However, the €300m of assets is likely to be reduced by €115m shortly. New Babylon, a 1.3m sq ft mixed-use complex in The Hague, has been sold to Victory Advisors for €86.6m, below book value.
Propertize is run by 170 staff and the team is generally well rated by bidders. It is possible that employees could be taken on by any successful party.
The portfolio is being sold through Lazard.
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