October 10, 2018 / 4:15 PM / in 2 months

Novo Banco agrees to sell foreclosed properties for 389 mln euros

LISBON, Oct 10 (Reuters) - Portugal’s Novo Banco, owned by U.S. private equity firm Lone Star, said on Wednesday it had agreed to sell a real estate portfolio with a book value of 717 million euros ($827 million) to New York-based Anchorage Capital Group for 389 million euros.

The portfolio comprises 8,726 foreclosed properties and the deal should be closed by the end of the year, the bank said, calling it “an important step forward in Novo Banco’s divestment strategy of non-core assets”.

Novo Banco is the successor to Banco Espirito Santo (BES), which was carved up by the state in 2014 after going bust under the weight of the debts of its founding family. It was acquired last year by Lone Star but the loss-making bank is still reliant on Portugal’s bank resolution fund for contingent capital.

$1 = 0.8669 euros Reporting By Andrei Khalip, editing by Axel Bugge

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