Oaktree secures Grupo Lar back bid for Project Gaudi’s Megapark Barakaldo as FMS Wertmanagement considers Netherlands and Italian NPL sales

Oaktree Capital Management closed the purchase of the reduced FMS Wertmanagement Project Gaudi non-performing loan portfolio paying around €260m all cash, after a back bid sale of the Bilbao shopping centre to Grupo Lar and the removal of two loans prior to closure.

OAKTREEGrupo Lar, the Spanish developer and investor, has acquired the 1.35m sq ft Megapark Barakaldo shopping centre in Bilbao in a back to back bid for just north of €150m, CoStar News understands.

Megapark Barakaldo was previously owned by Resolution Property who acquired the retail centre for more than €200m in January 2006 from Arcona Iberia and its joint venture partners, financed by Hypo Real Estate Bank International and the Royal Bank of Scotland. Resolution Property sold Megapark Barakaldo in 2012 to an investor which inherited the encumbered debt.

In addition, FMS Wertmanagement removed two loans from the original €735m, 18 loan Project Gaudi NPL:  the first was a loan securing the circa 333,700 sq ft Plaza Éboli shopping centre in Pinto in the southern Madrid metropolitan area. 

HIG Capital acquired Plaza Éboli from Doughty Hanson, the UK private equity firm, for €30m, repaying the loan back to FMS Wertmanagement at par.

The second removed loan from Project Gaudi was a combined €125m investment, development and VAT financing facility in July 2007 to Bluespace, formerly known as Blue Self Storage, which funded the acquisition of 17 self-storage properties – across Barcelona, Madrid and Valencia. FMS Wertmanagement has retained this non-performing loan.

These two removed loans are thought to in aggregate account for an unpaid loan balance of around €100m. This reduces the original €735m Project Gaudi NPL to an unpaid balance of €635m.

CoStar News understands that Oaktree paid €410m for the slightly slimmer Project Gaudi, reflecting a 35.4% discount.

Furthermore, the immediate back bid purchase of Megapark Barakaldo by Grupo Lar for circa €150m implies the net price Oaktree paid was €260m, which was likely paid on an all-cash basis by Oaktree given the final size of the deal.

FMS Wertmanagement closed the sale of Project Gaudi with Oaktree two weeks ago, in the German bad bank’s maiden European NPL portfolio sale.

CoStar News understands that FMS Wertmanagement is considering two further country-focused loan portfolio sales for the bad bank’s Netherlands and Italian sub and non-performing loans.

FMS Wertmanagement, spun out of Hypo Real Estate in 2010 as the nationalised bad bank, has reduced its commercial real estate loan book by €18.6bn to €8.6bn over the four years and three months to the end of 2014.

Of this remaining €8.6bn, FMS Wertmanagement has around €500m in loans secured by commercial properties in the Netherlands and circa €300m secured by Italian commercial properties.

CoStar News was first to break the story that FMS Wertmanagement was selling Project Gaudi, then reported on the finalists and was first to report on the winner.

Oaktree Capital Management, FMS Wertmanagement and Grupo Lar all declined to comment.

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
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