Novo Banco is sells a real estate portfolio via Anchorage Capital Group, L.L.C., a US investment advisor.
The sale will yield €390 million for the bank, from properties with a book value of €716 million, according to a statement sent to the Securities and Exchange Commission.
"Novo Banco informs that it has entered into a promissory agreement with indirect entities held by funds managed by Anchorage Capital Group ... for the sale of a portfolio of real estate assets, known as 'Projeto Viriato'," the statement reads.
The portfolio valued at €716.7 million is made up of 8,726 residential properties, including parking lots, industrial, commercial properties and land, according to the bank that "estimates to receive €388.9 million."
Novo Banco anticipates that this transaction will be concluded by the end of the year.
This announcement comes one month after Novo Banco announced the start of the sale process for a loan portfolio valued at €700 million involving a call for non-binding offers from Anchorage Capital Partners, Bain Capital Credit and Arrow Global Group.
"This transaction represents another important step in the process of divesting non-strategic assets of the New Bank, continuing this strategy of focusing on the banking business," the statement read, confirming that Anchorage has been chosen as the buyer.
Based on the bank's half-yearly accounts, this operation represents 30% of the total property that the institution intends to sell. This is one of two operations that the bank plans to carry out this year in order to sort out its balance sheet.
Anchorage Capital Group, L.L.C. is a New York-based registered investment adviser founded in 2003.
The firm “manages private investment funds across the credit, special situations and illiquid investment markets of North America and Europe using an active long and short basis, with particular focus on defaulted and leveraged issuers.”
See also: 'Taxpayers continue to fund privately owned Novo Banco'
