Yesterday, Alpha Bank SA announced that it has entered into a binding agreement with Poseidon Financial Investor DAC, an entity financed by funds managed by affiliates of Fortress Investment Group LLC, for the disposal of a pool of Non-Performing Loans to Greek SMEs.
These loans, mainly secured by real estate assets (the “Neptune Portfolio”), were valued at an on-balance sheet gross book value of €1.1 billion euros back in 2019. The Neptune Portfolio has been the target for takeover by Bain Capital, Apollo, Fortress, and LoneStar for some months. The portfolio of loans is guaranteed by some 4,000 properties submitted as collateral by SMEs in Greece.
Reuters reported the other day on the sale as part of Alpha’s efforts to offload bad debt and clean up its balance sheet. U.S.-based Fortress, which invests globally, including in undervalued assets and distressed credit. The hedge fund is notorious for being highly aggressive. Interestingly, Fortress Investment Group is also the parent company to Mystays hotels and resorts in Japan. The hedge fund only recently bought the American fast food restaurant Krystal as well.
In similar news, Bain Capital Credit, LP announced last month that it has entered into an agreement with National Bank of Greece to acquire a loan portfolio, known as Project Icon backed by industrial, commercial and residential real estate assets.
