Project Challenger & Colliseum

Aug 2019

Sell-side advisory - REO

Value €9.1 billion

Alantra advises Banco Sabadell on the sale process of €9.1bn gross value of REO assets to Cerberus Capital Management.

The Transaction was structured through the transfer of two real estate portfolios commercially identified as “Challenger” and “Coliseum” to one or more newly incorporated companies, the share capital of which was transferred so that Cerberus owned an 80% interest in the NewCo’s share capital and Banco Sabadell the remaining 20% interest.

These Portfolios represented the vast majority of their REO exposure to date.

Following the closing of the transction, Solvia Servicios Inmobiliarios, S.L.U. continued to service on an exclusive basis the real estate assets included to the Transaction.

The Transaction contributed positively to enhancing the profitability of Banco Sabadell group, requiring the recognition of additional provisions with a net impact of approximately € 92 million, and create at the time a positive impact of circa 13 basis points on the capital ratio of Common Equity Tier 1 (fully loaded) of Banco Sabadell.