Cerberus Capital Management has acquired a portfolio of non-performing loans from 360 separate borrowers, predominantly backed by commercial real estate in Denmark, from Finansiel Stabilitet, the country’s state-backed bad bank.
The nominal value of the loan portfolio, dubbed Project Mermaid, was DKK 7.5bn which equates to approximately €1bn, but the price paid was not disclosed. Cerberus, who signed the contract in Copenhagen late last night, is now the largest investor in commercial real estate NPLs in Denmark.
More than 80% of the underlying property portfolio in Project Mermaid is secured by Danish commercial property, CoStar News understands.
Finansiel Stabilitet inherited the loans from a wide range of distressed Danish banks, comprising Roskilde Bank, Løkken Sparekasse, Gudme Raaschou Bank, Fionia Bank, EBH Bank, Eik Bank Danmark, Amagerbanken, Fjordbank Mors, Max Bank and Sparekassen Østjylland.
“With the conclusion of this agreement we are moving significantly closer to a complete wind up of the remaining customer-related activities in the Group”, Henrik Bjerre-Nielsen, CEO of Finansiel Stabilitet said in a statement.
Finansiel Stabilitet launched the sale of Project Mermaid on 1 October, initially with a larger portfolio with a nominal value of DKK 10bn (€1.34bn) from 400 separate Denmark-based borrowers.
In May, Finansiel Stabilitet sold a portfolio of non-performing loans from 75 separate real estate companies with a nominal value of DKK 909m to Davidson Kempner European Partners.