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Loan portfolio transaction marketsSpain updateSeptember 2015

3 Loan portfolio transaction markets Spain update — September 2015

1Macroeconomic environment ................................... 1

Overview of the Spanish loan portfolio transaction market .................................................. 3

Real estate market in Spain ..................................... 5

Secured portfolios .................................................... 9

Unsecured portfolios .............................................. 10

Spain debt servicers ............................................... 12

Appendix ................................................................ 14

Contents

1Loan portfolio transaction markets Spain update — September 2015

-3,0-2,0-1,00,01,02,03,04,05,06,0

%

Spain GDP Germany GDP France GDP Italy GDP

Mar

-11

Jun-

11

Sep-

11

Dec

-11

Mar

-12

Jun-

12

Sep-

12

Dec

-12

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-13

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-13

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-14

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E

2016

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2019

E

Spain — GDP annual growth rateSource: INE (actuals) and EY estimation (projections)

As shown by the graph above, the Spanish economy began to recover at the end of 2013, and has since shown an improvement in GDP and the unemployment rate, resulting in

Spanish GDP is expected to continue the positive trend observed in 2014, and market estimates predict a higher growth rate for Spain compared to countries such as Germany, France or Italy in the projected period of 2015-2019.

This increase is expected to be driven by expansive monetary policies and reforms that encourage local demand.

International investors view Spain as an attractive region to deliver return aspirations driven by the ongoing market recovery, low interest rates and positive structural reforms introduced by the government.

11,661

28,415

20,630 21,350

11,624

17,626

5,000

0

10,000

15,000

20,000

25,000

30,000

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Mill

ions

of €

Foreign direct investment in SpainSource: INE, Bank of Spain (actual) and EY forecast

The unemployment rate remains high at 23.7% but is expected to decrease 5.7% between 2014 and 2019E, leading to a positive impact on ability to repay debts.

Spain — unemployment rateSource: INE, Bank of Spain and Inverco

11.3%

17.9%19.9%

21.4%24.8%

CAGR = 17.99% 25.7%

23.7%22.8%

21.4%20.2%

19.0%

18.0%

0%

5%

10%

15%

20%

25%

30%

FY20

08

FY20

09

FY20

10

FY20

11

FY20

12

FY20

13

FY20

14

2015

E

2016

E

2017

E

2018

E

2019

E

Economic measures such as continued wage moderation combined with modest increases in nominal unit labour costs, are expected to further help the unemployment recovery over the forecast horizon, in addition to European Union requests to apply additional labour reforms.

Macroeconomic environment


Overview of the Spanish loan portfolio transaction market

The graph below shows the deleverage process experienced

driven by the economic recovery observed in 2014. There are still large stocks of loan portfolios and real estate assets that represent an attractive proposition for domestic and international investors.

Spain — aggregated credit and NPLs (domestic)Source: INE, Bank of Spain and Inverco

CAGR = (4.9)%

1.87 1.84 1.84 1.781.60

1.451.38

0.0

0.1

0.1

0.2

0.2

0.3

0.00.20.40.60.81.01.21.41.61.82.0

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Trill

ions

of €

Trill

ions

of €

aggregated credit NPLs

As GDP growth and collateral valuations recovered, the volume of loan portfolio transactions increased.

Recent transactions in SpainSource: Auraree, Reuters, mergermarket, El Economista, Costar, EY intelligence, EY internal

7,660 8,042

25,916

6,061

14

22

42

14

0

5

10

15

20

25

30

35

40

45

0

10,000

15,000

20,000

25,000

30,000

2012 2013 2014 2015 YTD*

# Tr

ansa

ctio

ns

Mill

ions

of €

Total Millions # Transactions

5,000

The ability to access leverage increased in 2014, and we expect this availability to continue in the second half of 2015 and into 2016. Attractive advance rates are available to acquirers of credit via bank lending, and we expect this will help domestic purchasers to bid more competitively against international investors.

The operational capacity of servicers is maturing and starting to better assist buyers of credit in executing transactions and workout strategies. This servicing market maturity is being driven by both the increasing scale and development of incumbent players, and by divestments of platforms from banks in order to seed the third-party servicing market.

The unsecured debt market has been the most active in recent years, however, 2014 represented a balance between secured and unsecured transactions. The increase in the secured market is due to the portfolios including more promoter assets (property developments) combined with more optimistic collateral value estimations.

Project Hércules (2014), the acquisition of a residential mortgage portfolio from Catalunya Banc by Blackstone, was

€6.4bn and a consideration paid of €3.4bn, this represents an unprecedented investment in the Spanish market.

between the end of 2015 and 2016, such as Project Big Bang (Bankia REO portfolio, valued at €4bn), Chloe (Sabadell NPL-Secured portfolio), Silk (SAREB NPL-Secured portfolio) which will further drive the momentum in the market.

In the short-medium term we expect transactions to arise from

JVs with third-party servicers and NPLs coming to market as a result of bankruptcy proceedings.

Note: For more detail go to page 6 and 7


2


Real estate market in Spain

Background

Spain — evolution of the investment volume by sector Source: EY reserach

0

2,000

4,000

6,000

8,000

10,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

€m

Of ces Retail Bank Branches

Hotel Industrial

During the last 18 months, the real estate market in Spain has

reinvigorated the interest of international investors.

SOCIMIs, Spanish equivalent of REITs, were one of the main factors behind the upturn in the market, accounting for almost a third of the total investment volume and close to three-quarters of domestic investment. SOCIMIs are becoming more established in Spain and the Madrid Stock Exchange

Services and Real Estate sector.

The more active sectors in the last 18 months have been

respectively). The retail market also reached levels last seen in 2006, which was historically the top of the market (€2.3bn).

Local investors are regaining market share, accounting for a total of 45%, however 72% of the volume attributed to Spain, relates to SOCIMIs, which are considered to be Spanish, despite a large number of their stakeholders being overseas investors.

2015

2016

2006 2005

2007

2008

2009

2012

2013

2014

Growth

DecelerationContraction

Stabilization

10

0

-10

-20

-30

-20 -10 0 10 20

Real estate clockAnnual variation (%)

secondary cities.

getting old and many enterprises are willing to change their location to 4 towers WTC and other properties in the north (BBVA, Aviva, AXA). The best example is KPMG’s movement from Torre Europa (Azca) to Torre de Cristal and BBVA leaving its historical location in Azca to Madrid’s northern outskirts.

not been strong enough to reduce availability.

We anticipate an increase in rents and stabilisation of yield in the short term for prime products in Madrid and Barcelona with secondary assets to follow.


Real estate market in Spain (continued)

Retail market overview

as well as the sales in the shopping centres, are boosting the number of transactions of these assets in Spain. A total of 18 transactions have been completed during 2014, a number that widely exceeded the 8 that took place in 2013. Islazul in Madrid, El Boulevard in Vitoria or Puerto Venecia in Zaragoza are examples of the shopping centres that have been sold during 2014.

During Q1 2015, Orion Capital Managers announced the sale of the shopping centre Plenilunio, for €375mn, a record in Spain. Current prime yield for shopping centres in Spain is 6.6%, in contrast with other European countries such as England (4.5%), Belgium (6%) and France (5.5%).

For the next few months, rents for prime product are expected to marginally increase (as they follow a similar progression to GDP) whilst yields stay constant. Secondary product is expected to improve at a slower pace.

Industrial market overview

During the last 18 months, both yield and rents have remained

The industrial and logistics market in Spain is dominated by two principal markets: Madrid and Barcelona.

The Spanish logistics market has been very active in the last 18 months, due to the limited supply of stock. Examples of this are the acquisition by Blackstone of 137,500 sqm distributed in four logistics platforms in Spain or the agreement between Dia and Logicor (Blackstone’s logistics platform) for the rental of 30,000 sqm of a logistics building.

Hospitality market overview

Last year was the fourth largest by volume of hotel investments for the past 20 years, reaching 50 establishments with a total of 8,861 rooms.

The resort sector has once again dominated the hospitality market, both by number of operations and by volume.

During 2014, the emergence of debt portfolios with hotel

transactions are the following: The acquisitions of ‘Meridian’ (Q4 2014) by Cerberus, ‘Amazon’ (Q4 2014) by Starwood Capital and ‘Octopus’ (Q2 2014) by Lone Star. Another transaction to be highlighted in Spain during the last year is the acquisition of Sotogrande by Cerberus and Orion Capital for €220mn.

Residential market overview

Development of new real estate projects during the last few years has been almost completely suspended throughout Spain. This has lead to a control in the increase of the new housing stock and thus, allowing a faster future recovery.

During the last 18 months, residential house prices have

There is a growing consensus that, across some sectors of the market at least, the Spanish property market has not only bottomed out, but also started to show signs of recovery.

The large urban centres, with Madrid and Barcelona at the top, will likely show a small recovery in prices during the second half of 2015, whilst other secondary cities and properties will require a longer period of time.


0

50,000

1,00,000

1,50,000

2,00,000

2,50,000

3,00,000

# House transactions

# T

rans

actio

ns

Q1

2005

Q3

2005

Q1

2006

Q3

2006

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Q3

2007

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2008

Q3

2008

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Q3

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Q1

2015

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

Q1

2008

Q2

2008

Q3

2008

Q4

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Q2

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2014

Q2

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Q3

2014

Q4

2014

Q1

2015

# Land transactions

# T

rans

actio

ns

Spain — house transactionsSource: INE, Bank of Spain and Inverco

Spain — land transactionsSource: INE, Bank of Spain and Inverco

0

500

1,000

1,500

2,000

2,500

3,000

Q1

2008

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Q1

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Q4

2014

Q1

2015

€/m

2

Spain Cataluña Madrid

0

100

200

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Q1

2008

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€/m

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Spain Cataluña Madrid

Spain — house price indexSource: INE, Bank of Spain and Inverco

Spain — land price indexSource: INE, Bank of Spain and Inverco


3


Secured portfolios

Background Since 2007 the transacted asset type has evolved from low

quality residential retail assets toward well located promoter assets. This is the consequence of banks cleaning low quality assets from their balance sheets.

In 2014, Project Hercules, a mainly retail secured portfolio from CatalunyaCaixa, engaged a large number of buyers due to its volume. The transaction included the transfer of a residential mortgage portfolio, mainly located in Cataluña, to a securitisation fund for an amount equal to a gross book value of €6.4bn. This transaction was a milestone in the market in terms of volume and price paid, leaving many unsuccessful bidders to re-think how aggressive they should be for future processes.

Furthermore, the price paid for Hercules will be used as a benchmark in the market for future processes, even though it seemed to be higher than initially estimated by investors.

Key trends In the last few quarters, retail secured loans have experienced

noted that there has been increasing variety and complexity of the underlaying collateral (e.g., land plots, social housing, etc.)

In the last quarter of 2014, a greater volume of portfolios can be observed compared to the second quarter; the latter served as the transition to selling promoter assets.

We view the increase in transacted volume to continue this year with vendors aiming to achieve deconsolidation targets before year end.

We also expect to see large portfolios such as Project Hercules come to market between the end of 2015 and 2016.

Outlook In the pipeline, an amount of c.€2bn of high quality backed

in Spain.

Before the end of 2015 several important transactions should take place, such as Project Big Bang. The Spanish nationalized lender Bankia has marketed a €4.8bn portfolio of residential and commercial buildings in what it calls Project Big Bang, and is simultaneously offering three other packages to accelerate the clearing of its balance sheet.

There are other vendors in the banking sector that to date have had a secondary role in loan portfolio transactions who could emerge as active sellers in the second half of 2015.

Some of these vendors are waiting on the optimal time to sell their respective portfolios, however, investors in the meantime have several other opportunities to appraise.

In terms of prices these portfolios are expected to trade at, we see this as a function of a vendor’s ability to time and control a process to its liking, the assumptions bidders make on recovery of loans and most importantly, the quality of the underlying collateral.

8,540

1,974

711 958

2,580

7

6

3

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9,000

3Q2014 4Q2014 1Q2015 2Q2015 3Q2015

# Tr

ansa

ctio

ns

Mill

ions

of €

Deal value # transactions

Spain — Secured portfolio transaction volumeSource: EY Research


Unsecured portfolios

Background Due to the correlation with the economy’s performance,

experienced since the start of 2014.

Unsecured portfolios are closely linked to the Spanish economy’s evolution, and the capacity of borrowers to repay debts is the main driver to create investor returns.

The unsecured market has been the most active in the last couple of years, however, 2014 represented a balance between secured and unsecured transactions.

Key trends Historically, investors have taken a cautions approach to

this asset class and had high IRR% requirements. As liquidity

higher bid prices.

Further, the ability of borrowers to repay their debts is converting NPLs into re-performing loans and improving investor returns.

The NPL ratio registered in Q1 2015 (12.5%) and increased savings in FY2014 (8.6%) show an improvement in the Spanish unsecured retail market.

Outlook We expect to see acquirers of unsecured retail portfolios at the

height of the crisis sell these portfolios on a secondary basis

years of ownership.

Transactions expected in 2015 for unsecured NPL loans are expected to be portfolios combined with secured NPL loans. The transaction volume is expected to exceed the €2bn mark.

4


1.84 1.84 1.781.60

1.451.38 1.37

5.1%5.8%

7.8%10.4%

13.6%12.5% 12.5%

2%

0%

4%

6%

8%

10%

12%

14%

16%

0.0

0.5

1.0

1.5

2.0

2.5

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 1Q2015

Mill

ions

of €

# Loans Defaulters NPL ratio

663

2,820

1,343

1,700 1,600

0 0

1

4

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2 2

0 0 0

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1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015

# Tr

ansa

ctio

ns

Mill

ions

of €

Deal value # transactions

11.0%

6.8%

15.3%

8.6%

-2%

-4%

0%

2%

4%

6%

8%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Saving Rate (% Gross Income available) Gross Income Available (% Year variation)

FY20

11

FY20

02

FY20

03

FY20

04

FY20

05

FY20

06

FY20

07

FY20

08

FY20

09

FY20

10

FY20

11

FY20

12

FY20

13

FY20

14

Spain — NPL ratioSource: INE, Bank of Spain and Inverco

Spain — unsecured portfolio transaction volumeSource: EY research

Spain — saving rateSource: INE, Bank of Spain and Inverco

Spain — transaction evolution by type of debtSource: EY research

2012 2013 2014 2015 REO 35 1,477 1,492 212Unsecured NPLs 7,175 6,535 6,526 1,600Secured NPLs 450 30 17,899 4,249

0

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10,000

15,000

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Mill

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of €


Spain debt servicers

Background

changed the landscape of the sector.

The ‘Sociedad de Gestión de Activos procedentes de la Reestructuración Bancaria’ (SAREB), conducted a selection process for asset servicing of the ‘bad bank’, through the well known ‘Project Ibero’. The winners were Haya Real Estate, Servihabitat and Altamira AS, and will service 126,000 assets of an aggregate value of €41.2bn. This process is additional to that previously won by Solvia, which currently services a total asset volume of 42,900 assets of c.€7bn.

Project Ibero captured most of the attention of the debt servicing market, due to the high volume of portfolios serviced with residential mortgages located in Catalunya, Valencia, Andalucía and Madrid.

Also during 2014, we saw Banco Sabadell selling its servicing platform to Lindorff with a volume of over €23bn to be

cornerstone transaction.

2015 has continued this momentum with a number of banks such as BMN, Cajamar and others launching the sale of their servicing platforms or an extension of existing agreements. Furthermore, we have observed a large number of small debt servicing platforms sell in the range of €10m to €40m, driven by an appetite from foreign investors wishing to enter the Spanish debt servicing market.

Key trends We expect larger platforms to seek acquisitions in small/

medium sized servicers to further add volume and gain

This increasing operational capacity allows investors to bid for a wide variety of loan assets, servicing debt for a longer period of time independently of the aging of the debt to be recovered (amicable, litigation, monitoring) and its collaterals (secured, unsecured). Operational excellence is a key goal and investment in technology has been made to gain competitive advantages.

The market in Spain comprises unsecured debt servicers with high operational capacity, but despite this, there is a limited number of independent and experienced servicers for secured portfolios available.

Investors are approaching the Spanish debt servicing market with a long-term view, creating stable partnerships with local servicers or developing their own investor platforms, leveraging their know-how and experience in acquiring in other regions.

Outlook For Q2 2015, a dynamic situation in the loan servicing

market is expected, with well positioned investors willing to make additional investments to consolidate their position, potentially bidding for bank debt servicing agreements or acquiring debt servicers.

There are currently around 15 ongoing processes related to debt recovery platforms that are expected to be completed between the end of 2015 and 2016 and also another 8 the in pipeline.

5


Secured closed transactions

Seller Completed date Buyer Project name Asset type Deal value (€m)

IBERCAJA BANCO Jul–15 SEER CAPITAL - NPL-SECURED 210

CONFIDENTIAL Jul–15 CONFIDENTIAL CONFIDENTIAL NPL-SECURED 898

BANKIA, Jul–15 CHENAVARI and OAKTREE WIND NPL-SECURED 1,312

BMN Jul–15 ELLINGTON MANAGMENT PAMPA NPL-SECURED 160

BANKIA May–15 BANK OF AMERICA MERRILL LYNCH CASTLE NPL-SECURED 400

BANKIA May–15 SANKATY ADVISORS ‘COMMANDER’ NPL-SECURED 558

BANCO DE SABADELL, Mar–15 PIMCO and FINSOLUTIA CADI NPL-SECURED 240

SAREB Jan–15 DEUTSCHE BANK KAPLAN NPL-SECURED 234

SAREB Jan–15 BLACKSTONE ANETO NPL-SECURED 237

CELERIS SERVICIOS FIN.DNCIEROS

Dec–14 AXONIC CAPITAL CENTAURUS NPL-SECURED 62

CAIXABANK, Dec–14 BLACKSTONE TOWER NPL-SECURED 383

SAREB Dec–14 HAYFIN CAPITAL AGATHA NPL-SECURED 194

SAREB Dec–14 CERBERUS MERIDIAN NPL-SECURED 133

BANKIA, Oct–14 STARWOOD and SANKATY AMAZONA NPL-SECURED 772

BANKIA, Oct–14 CHENAVARI SKY NPL-SECURED 430

CEISS Sep–14 PERRY CAPITAL TORO NPL-SECURED 485

CAIXABANK Aug–14 D. E. SHAW& CO VALONIA NPL-SECURED 304

BANCO DE SABADELL Aug–14 AIQON CAPITAL SIROCO NPL-SECURED 554

BANKIA Aug–14 DEUTCHE BANK SOMO- CASTRO NPL-SECURED 577

SAREB Aug–14 CANYON CAPITAL PAMELA NPL-SECURED 198

BANKIA Jul–14 BLACKSTONE SCREEN NPL-SECURED 30

CATALUNYA BANC Jul–14 BLACKSTONE HÉRCULES NPL-SECURED 6,392

CAIXABANK Jun–14 ‘D. E. SHAW& CO,PERRY CAPITAL SAVIA ASSET MANAGEMENT’

FLANDES NPL-SECURED 1,000

COMMERBANK (EUROHYPO) Jun–14 LONE STAR y JP MORGAN OCTOPUS NPL-SECURED 4,500

FINANCIAL INSTITUTION Apr–14 HISPANIA REAL SOCIMI - NPL-SECURED 14

IBRC(Irish Bank Resolution Corporation)

Mar–14 NORTHWOOD INVERSTORS STONE NPL-SECURED 281

BANKIA Feb–14 ‘ELLIOTT MAN.DGEMENT CORPORATION, OAKTREE and SAVIA ASSET MANAGMENT’

INDIA 6 NPL-SECURED 713

SAREB Jan–14 PONTEGADEA BANESCO BUILDING NPL-SECURED 66

SAREB Jan–14 DEUTSCHE BANK/MAGIC REAL ESTATE ÍNDIGO AND WALLS NPL-SECURED 100

COMMERBANK Jan–14 INTERNATIONAL INVESTORS - NPL-SECURED 710

BANCO SANTANDER Dec–13 BANK OF AMERICA MERRILL LYNCH - NPL-SECURED 30

BANCO SANTANDER Mar–12 LONE STAR - NPL-SECURED 150

BANCO SANTANDER Mar–12 CERBERUS - NPL-SECURED 300

Secured debt transactions

Appendix: recent transactions in the Spanish market6


Secured open selling processes

Seller Completed date Project name Asset type Deal value (€m)

BANCO DE SABADELL 3Q — 4Q 2015 CHLOE NPL-SECURED 2,298

CONFIDENTAL 3Q — 4Q 2015 CONFIDENTAL PL RE SECURED & SERVICING PLATAFORM 381

CAJA ESPAÑA — CAJA DUERO 3Q — 4Q 2015 TORO PL — NPL RE SECURED & UNSECURED/REO 1,130

FORTRESS 3Q — 4Q 2015 COAST NPL-SECURED AND UNSECURED,REO AND SERVICER 700

CAIXABANK 3Q — 4Q 2015 MORE NPL-SECURED 780

BANCO SANTANDER 3Q — 4Q 2015 FORMENTERA NPL-SECURED 162

CONFIDENTAL 3Q — 4Q 2015 CONFIDENTAL NPL-SECURED 3,712

SAREB 3Q — 4Q 2015 ALQUIMAISON NPL-SECURED 59

BANCO SANTANDER 3Q — 4Q 2015 MAMUT NPL-SECURED 800

IBERCAJA BANCO 3Q — 4Q 2015 GOYA NPL-SECURED 900

BBVA 3Q — 4Q 2015 LICEO NPL-SECURED 70

SAREB 3Q — 4Q 2015 VEGA NPL-SECURED 180

SAREB 3Q — 4Q 2015 SILK NPL-SECURED 1,000

Secured pipeline


BBVA 2015Y — 2016Y LYON NPL-SECURED 900

CAIXABANK 2015Y — 2016Y - NPL-SECURED 650–750

CONFIDENTAL 2015Y — 2016Y - PL — NPL RE SECURED/REO 270

BANCO SANTANDER 2015Y — 2016Y - NPL-SECURED AND UNSECURED -

SAREB 2015Y — 2016Y IVORY NPL-SECURED 750

SAREB 2015Y — 2016Y VELETA NPL-SECURED 245


Unsecured debt transactionsUnsecured closed transactions

Seller Completed date Buyer Project name Asset type Deal value (€m)

BANCO DE SABADELL Feb–15 AIQON CAPITAL AUSTER NPL-UNSECURED 800

APOLLO Feb–15 GROVE COPPI NPL-UNSECURED 800

BBVA Nov–14 DEUTSCHE BANK SATURN NPL-UNSECURED 1,700

BANCO POPULAR ESPAÑOL Oct–14 GROVE CLIPPER NPL-UNSECURED

CAIXABANK Aug–14 D. E. SHAW& CO VALONIA NPL-UNSECURED 700

BANKIA Aug–14 DEUTCHE BANK SOMO- CASTRO NPL-UNSECURED 318

BANKIA Jul–14 CERBERUS SOMO-LAREDO NPL-UNSECURED 325

KUTXABANK Jun–14 LI NKS FINANZAS GALEA NPL-UNSECURED 339

FORTRESS Jun–14 LINDORFF LUNA NPL-UNSECURED 1,000

CATALUNYA BANC Apr–14 AIQON CAPITAL - NPL-UNSECURED 1,481

BBVA Apr–14 INTRUM JUSTITIA - NPL-UNSECURED

LIBERBANK Jan–14 PERRY CAPITAL and SAVIA ASSET MANAGEMENT - NPL-UNSECURED 663

BANCO DE SABADELL Dec–13 AKTIV CAPITAL GARBÍ NPL-UNSECURED 437

BANCO DE SABADELL Dec–13 ELLIOTT MANAGEMENT CORPORATION GARBÍ NPL-UNSECURED 195

BMN Nov–13 ‘MARATHON ASSET MANAGEMENT SAVIA ASSET MAN.DGMENT’

- NPL-UNSECURED 1,400

BANCO POPULAR ESPAÑOL Aug–13 - - NPL-UNSECURED 880

BANKIA Aug–13 LINDORFF - NPL-UNSECURED 125

BANKIA Jul–13 CERBERUS - NPL-UNSECURED 1,354

CAIXABANK May–13 CREDIGY - NPL-UNSECURED 440

BANCO SANTANDER Mar–13 ELLIOT MANAGMENT - NPL-UNSECURED 300

LIBERBANK Feb–13 CERBERUS - NPL-UNSECURED 574


Feb–13 PEPPER AUSTRALIA - NPL-UNSECURED 290

IBERCAJA BANCO Jan–13 ‘JB CAPITAL MARKETS (SAVIA ASSET MANAGMENT) and YORVIK’

- NPL-UNSECURED 540

BANCO POPULAR ESPAÑOL Dec–12 LINDORFF,ANACAP and EOS - NPL-UNSECURED 1,143

BANCO SANTANDER Oct–12 BANK OF AMERICA MERRILL LYNCH - NPL-UNSECURED 1,000

BANKIA Oct–12 AKTIV CAPITAL HISPANIA NPL-UNSECURED 126

BANCO POPULAR ESPAÑOL Sep–12 D. E. SHAW& CO - NPL-UNSECURED 200

CITIBANK ESPAÑA, Aug–12 APOLLO - NPL-UNSECURED

CITIBANK ESPAÑA, Aug–12 APOLLO - NPL-UNSECURED

BANKIA Jul–12 AKTIV CAPITAL HISPANIA NPL-UNSECURED 560

BANCO SANTANDER Apr–12 FORTRESS - NPL-UNSECURED 1,000

BANCO SANTANDER Mar–12 FORTRESS BERNAR NPL-UNSECURED 1,100

BANCO SANTANDER Mar–12 MORGAN STANLEY - NPL-UNSECURED 1,200

BANCA CIVICA Mar–12 - - NPL-UNSECURED 846

Appendix: recent transactions in the Spanish market (continued)


Unsecured open selling processes




Unsecured pipeline


BBVA 2015Y — 2016Y TITAN NP- UNSECURED 650–800

CAIXABANK 2015Y — 2016Y - NP- UNSECURED 700–1,200

BANCO SANTANDER 2015Y — 2016Y - NPL-SECURED AND UNSECURED -

CAJAS RURALES 2015Y — 2016Y - NP- UNSECURED -


REO open selling processes

Seller Completed date Buyer Project name Asset Type Deal value (€m)

BMN Jul–15 APOLLO CORONAS REO 100

BANKINTER Jul–15 ELLIOT - REO 60

SAREB Feb–15 CASTLELAKE CROSSOVER REO 52

SAREB Dec–14 BLACKSTONE CORONA REO 100


Dec–14 AXONIC CAPITAL CENTAURUS REO 120

BANKIA Dec–14 GOLDMAN SACHS LAKE REO 355

BANCO DE SABADELL Dec–14 DEUTSCHE BANK & HIPOGES TRITÓN REO 435

SAREB Dec–14 D. E. SHAW& CO AGATHA REO 65

CAIXABANK Jul–14 TPG - REO -

BBVA Jun–14 KSAC EUROPE (KING STREET CAPITAL MAN.DGEMENT)

- REO 80

SAREB Jun–14 CASTLELAKE CROSSOVER (PARTIAL) REO 80

DIFERENTES BANKS May–14 DRAGO CAPITAL,PSP INVESTMENTS - REO 140

BANCO DE SABADELL Mar–14 LONDON&REGIONAL PROPERTIES 115 AVENIDA AMÉRICA REO 117

SAREB Jan–14 BLACKSTONE DORIAN REO -

SAREB Dec–13 FORTRESS TEIDE REO -

SAREB Dec–13 FORTRESS and LAR promote group TEIDE REO 146

SAREB Nov–13 DEUTSCHE BANK BERMUDAS AND ABACUS REO 323

SAREB Nov–13 FORTRESS BERMUDAS AND ELORA PORTFOLIO REO 500

SAREB Nov–13 BANK OF AMERICA MERRILL LYNCH BERMUDAS AND FADO PORTFOLIO REO 80

BANKINTER Nov–13 CASTLE LAKE PRIME REO 32

BBVA Sep–13 BAUPOST GROU CAMELIA REO 100

BANCO DE SABADELL Aug–13 SEVERAL INTERNATIONAL INVESTORS

- REO 89

SAREB Aug–13 HIG CAPITAL BULL REO 206

MADRID CITY COUNCIL Jul-13 BLACKSTONE - REO -

APOLLO Dec–12 TPG MORA I REO 35

REO transactions



REO open selling processes


CAIXABANK 3Q — 4Q 2015 EUROSTARS REO 103

BANCO DE SABADELL 3Q — 4Q 2015 EMPIRE REO 600


BANKIA 3Q — 4Q 2015 OTELO REO -


BANKIA 3Q — 4Q 2015 BIG BANG REO 4,800

BANKINTER 3Q — 4Q 2015 MIRÁS REO 60

SAREB 3Q — 4Q 2015 BIRDIE REO 250

IBERCAJA BANCO 3Q — 4Q 2015 KITE REO 800

BANCO POPULAR 3Q — 4Q 2015 ELCANO REO 451

REO pipeline


CONFIDENTAL 2015Y — 2016Y - PL — NPL RE SECURED/REO 270

Debt servicer transactionsDebt servicers closed transactions


FONDO MIURA Feb–15 CERBERUS SERVICER -

KUTXABANK Dec–14 LOAN STAR(NEINOR BARRIA) SERVICER -

CAJA MAR Nov–14 CERBERUS (HAYA REAL ESTATE) SERVICER -

GFKL Fund Jul–14 DE SHAW SERVICER 8

BANCO DE SABADELL Jul–14 LINDORFF SERVICER -

‘BANCA MARCH, S.A. ARES CAPITAL DEUTSCHE BANK EUROPRA CAPITAL’

Jul–14 MERLIN PROPERTIES SOCIMI SERVICER 740

BANCO SANTANDER Jul–14 APOLLO SERVICER 7,846

BANESTO Jun–14 CENTERBRIGE SERVICER -

CATALUNYA BANC Apr–14 BLACKSTONE SERVICER -

BMN Jan–14 LINDORFF SERVICER -

BMN Jan–14 CERTERBRIGE (Aktua) SERVICER -

BANCO POPULAR ESPAÑOL Dec–13 KENNEDY WILSON and VARDE PARTNERS SERVICER -

SAVING BANKS Nov–13 FORTRESS SERVICER 220

- Nov–13 ELLIOT SERVICER -

CAIXABANK Sep–13 TPG SERVICER 370

BANKIA Sep–13 CERBERUS SERVICER -

BANKIA Jul–13 APOLLO SERVICER -

BANCO SANTANDER Jun–13 LINDORFF SERVICER -

BANCO POPULAR ESPAÑOL Jan–13 EOS SERVICER -



Debt servicers pipeline


SEGESTION 2015Y — 2016Y MALBEC SERVICER -

BANKIA 2015Y — 2016Y - SERVICER -

CONFIDENTAL 2015Y — 2016Y FRAC SERVICER -

BMN 2015Y — 2016Y REMBRANDT SERVICER -

CAJAMAR 2015Y — 2016Y ALMANZORA SERVICER -

BBVA 2015Y — 2016Y OSLO SERVICER -

GESIG 2015Y — 2016Y LEGO SERVICER -

COBRALIA 2015Y — 2016Y DELPHOS SERVICER -

Debt servicers selling processes


BBVA 3Q — 4Q 2015 - SERVICER -

CONFIDENTIAL 3Q — 4Q 2016 CONFIDENTAL PL RE SECURED & SERVICING PLATAFORM 381

BANCO SANTANDER 3Q — 4Q 2017 - SERVICER 300–400

FORTRESS 3Q — 4Q 2018 COAST ‘NPL-SECURED AND UNSECURED, REO AND SERVICER’ 700

LUCANIA 3Q — 4Q 2019 - SERVICER -

COBRALIA 3Q — 4Q 2020 - SERVICER -

GESIF 3Q — 4Q 2021 - SERVICER -

COLLECTA 3Q — 4Q 2022 - SERVICER -

AKTUA 3Q — 4Q 2023 - SERVICER -

FINSOLUTIA 3Q — 4Q 2024 - SERVICER -

COPERNICUS 3Q — 4Q 2025 - SERVICER -

PARATUS 3Q — 4Q 2026 - SERVICER -

HIPOIBERIA 3Q — 4Q 2027 - SERVICER -

SAVIA 3Q — 4Q 2028 - SERVICER -

HUDSON 3Q — 4Q 2029 - SERVICER -

Debt servicer transactions (continued)

United Kingdom and Ireland

Contacts

Mathieu Roland-BillecartT: + 44 20 7951 5206M: + 44 7799 342 682E: [email protected]

Real estate team:

Ian CosgroveT: + 44 20 7951 1094M: + 44 7715 704 748E: [email protected]

Tom GroomT: + 44 20 7951 4813M: + 44 7500 066 849E: [email protected]

Aqeel HussainT: + 44 20 7980 9198M + 44 7552 282 909E: [email protected]

Retail team:

Erberto ViazzoT: + 39 0280 669 752M: + 39 348 191 1479E: [email protected]

Benoit MaillardT: + 33 1 5561 0154M: + 33 6 4679 4065E: [email protected]

David FriasT: + 34 915 725 086M: + 34 660 815 863E: [email protected]

Italy

France

Spain

Luke CharletonT: + 353 1 221 2103M: + 353 87 262 9051E: [email protected]

Daniel MairT: + 49 6196 996 24703M: + 49 160 9392 4703E: [email protected]

Graham ReidT: + 353 1 221 1449M: + 353 87 684 8006E: [email protected]

Nora Charlotte von ObstfelderT: + 49 6196 996 27678M: + 49 160 939 27678E: [email protected]

Ireland team

Germany

Gonzalo Jiminez GonzalezW: + 34 915 674 053 M: + 34 619 526 610E: [email protected]

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