Alantra advises Banco BPM on a structured sale of non-instrumental real estate assets for €295mn

Oct 2024

Portfolio Sale

Milan – Alantra has acted as a financial advisor to Banco BPM, Italy’s third-largest financial services group in terms of assets, on a sale of more than 330 non-instrumental real estate assets for €295mn.

Banco BPM, created in 2017 upon the merger of Banco Popolare and Banca Popolare di Milano (BPM), is the third largest retail and corporate banking conglomerate in Italy in terms of assets. An extensive network serving households and businesses along with an in-depth knowledge of the market and innovative solutions offering underpin the strength of Banco BPM, which is active in various areas of the banking sector, including private and investment banking, asset management, and assurance banking, also through the Group’s investee companies.

The transaction represents a key step towards achieving the targets of the entity’s 2023-2026 strategic plan, which provides for the disposal of 50% of the non-instrumental assets: with the completion of this transaction, the book value of such assets will stand at €479mn (pro forma value based on data as at 30 June 2024), compared to €915mn as of 30 September 2023.

The real estate assets will be transferred in tranches starting at the end of 2024, once the deed conditions are met. They will be acquired by a securitization vehicle managed by Phoenix Asset Management S.p.A., backed by funds and entities advised or managed by Pacific Investment Management Company LLC (PIMCO), a global asset management leader, and SPF Investment Management L.P., a leading investor in structured credit. The vehicle will issue mezzanine and junior notes, to be purchased by Phoenix Asset Management, while Banco BPM will provide senior financing.

Renato Limuti, Managing Director at Alantra, said: “We are particularly pleased to have worked on this successful and innovative transaction that allows Banco BPM to achieve its strategic goals and rationalize its portfolio of non-instrumental real estate assets. The deal further underpins our commitment to the Italian market and aligns with our strategy to serve as a comprehensive specialist advisor for financial institutions, as well as a leader in structured portfolio disposals and real asset securitizations.”

This transaction further reinforces Alantra’s momentum in the FIG sector and consolidates its position as a trusted advisor to leading financial institutions on a wide variety of asset classes.