LONDON (Alliance News) - Chenavari Capital Solutions Ltd on Monday said it has invested EUR4 million in a portfolio of non-performing residential mortgage loans and repossessed real estate assets across Spain.
The total portfolio has an outstanding balance of EUR437 million and is being purchased at a significant discount to both the outstanding balance and the revised real estate valuation, Chenavari said.
"The investment has been priced to a double-digit return under a base case that is conservative in terms of resolution strategy, house price appreciation and transaction costs, while still achieving a positive return in a scenario at which properties are realised at 'fire-sale' valuations. If a more optimistic scenario for the portfolio work-out is applied returns will be in excess of 20%," the company said.
Following the transaction, Chenavari is now 93% invested.
Shares in Chenavari were trading down 0.2% at 98.45 pence Monday afternoon.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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