Parvalorem in 2nd attempt to offload properties
A real estate vehicle which holds the property assets of collapsed bank BPN is to relaunch the sale of a portfolio of properties valued at €230 million.
It is the second time that Parvalorem, the management fund which holds the assets, is trying to offload the properties, two-third of which are currently being rented out.
Parvalorem and Participadas are both public vehicles set up 10 years ago to manage what remains of BNP. The sale process was started two years ago but did not reach a positive outcome, and the Ministry of Finance decided to stop the operation reports Público.
Investors will have 90 days after the publication of the public competition in the Republic circular Díario da República to put forward proposals. Deloitte will oversee the transaction.
Some 98.63% of the share units in the real estate fund Imonegócios, controlled by Parvalorem, will be sold, and all of Participadas share capital, the entity that manages Imofundos.
These fund and the asset management vehicles were set up following the nationalisation of the failed bank BPN in 2008 to decide what to do with the property assets and rent them out until they were sold.
The fund has a Net Asset Value (NAV) of approximately €240 million, being one of the three open funds with the highest annual revenues. It manages a real estate portfolio of €227 million, with many of the properties being commercial buildings located in Lisbon (57%) and 67% of the rented value bringing in an average yield of 6.9%.
Parvalorem closed 2021 with losses of €17 million overall, half of the losses registered in 2020. It also has a black hole of almost €4Bn. It has €353 million in assets to counter impairments created from State loans through the Directorate-General of the Treasury and Finances to the tune of €4.3Bn.