CCSL : Chenavari makes new investment in Spanish debt
Chenavari Capital Solutions has invested €21.6m in a bilateral transaction with a Spanish bank – the deal gives exposure to a concentrated portfolio of sub-performing and non-performing mortgage loans and repossessed real estate assets. The total original face value of the portfolio is ca. €400m – the total deal size is €79m. The portfolio comprises predominantly loans backed by residential and commercial real estate assets and, to a lesser extent, repossessed real estate assets ready for sale and mortgage loans that had been granted to local developers. All assets in the portfolio are located in Spain. They describe the investment as offering “strong double digit return with limited downside risk”.
This deal is 13% of Chenavari’s portfolio and brings them up to 87% invested. Since listing a year ago they have invested all the IPO proceeds but some cash has flowed back to them.