Swedish debt specialist Intrum has acquired a 100% stake in Spanish real estate debt and property platform Haya Real Estate for €140 mln.
The transaction, which should be completed by Q3 2023, is expected to generate attractive return even while only contemplating the completion of existing client contracts without any extensions or new business.
The acquisition will be financed by cash and available bank commitments and will improve Intrum’s client service business by deepening the existing relationship with US asset management group Cerberus.
Haya Real Estate brings large contracts with key Spanish clients including two of the country’s largest banks, BBVA and CaixaBank, and Grupo Cooperativo CajaMar.
Andrés Rubio, president & CEO of Intrum, said: ‘This transaction extends Intrum’s strong Servicing franchise in Spain, one of our core markets and the second most profitable country across our footprint. It addresses one of the strategic priorities presented for 2023, Grow & Transform, by accelerating our commercial development and strengthening our secured loan and asset servicing plus expanding our business with key clients in our Franchise Markets. The deal economics are favourable with significant earnings accretion and a lowering of our leverage ratio while strengthening our valuable Servicing income stream. This deal is evidence that as the servicing sector evolves and undergoes consolidation, Intrum can be disciplined in pursuit of inorganic opportunities to complement our core organic growth and development plans.’
The deal is subject to approval by the Spanish competition authority and should be completed by the end of Q3 2023.
As a result of the acquisition, Intrum will increase the volume of assets under management in Spain by nearly €11 bn, including 105,000 real estate assets.
The integration of Haya Real Estate will see Intrum taking over a team of over 550 professionals.
In 2022, Haya Real Estate achieved a transaction volume of €2.4 bn and recorded €173.7 nln in revenues.