Caribbean Property Group and Perella Weinberg in Banco Popular Deal


Caribbean Property Group and affiliates of Perella Weinberg Partners’ Asset Based Value Strategy, have completed the acquisition of a portfolio of non-performing commercial and constructions loans, and commercial and single-family real estate from Banco Popular de Puerto Rico. The portfolio has a combined unpaid principal balance on loans and appraised value of other real estate owned of approximately $995 million and a book value of approximately $540 million.

PRESS RELEASE

Caribbean Property Group, one of the leading real estate investors and asset managers in the Caribbean and Central America, and affiliates of Perella Weinberg Partners’ Asset Based Value Strategy, today announced that they have completed the acquisition of a portfolio of non-performing commercial and constructions loans, and commercial and single-family real estate from Banco Popular de Puerto Rico (“Banco Popular”). The portfolio has a combined unpaid principal balance on loans and appraised value of other real estate owned of approximately $995 million and a book value of approximately $540 million.

Caribbean Property Group and affiliates of Perella Weinberg Partners’ Asset Based Value Strategy purchased the portfolio as part of a joint venture between the firms. This is the third transaction completed between the parties.

Under the terms of the transaction, Banco Popular will provide an advance facility of approximately $35 million. The facility will cover cost-to-complete amounts and expenses of certain projects. Banco Popular will also provide approximately $30 million in the form of a working capital line to fund certain operating expenses of the asset-owning Borrower. Additionally, Banco Popular will receive approximately $99 million in cash, a note for approximately $182 million as seller financing and a 24.9% equity interest in the Borrower.

David Schiff, Partner at Perella Weinberg Partners and Portfolio Manager of the Asset Based Value Strategy, stated, “Identifying value-driven investment opportunities is a critical focus of the Asset Based Value Strategy. We are delighted to partner with Caribbean Property Group, which shares our approach to investing in compelling real estate opportunities in Puerto Rico and the Caribbean.”

Mark Lipschutz, Partner and CEO of Caribbean Property Group, stated, “This was a very complex deal involving over 2,000 non-performing loans and just under 1,000 REO properties. We couldn’t have completed the transaction within the required time frame without the great working relationship we enjoy with both Perella Weinberg Partners’ Asset Based Value Strategy and Banco Popular. This transaction evidences that our commitment to Puerto Rico remains as strong as ever.”

About Perella Weinberg Partners’ Asset Based Value Strategy:
Perella Weinberg Partners’ Asset Based Value Strategy is a leading post-financial crisis provider of U.S. specialty finance solutions. Since inception in 2008, the Strategy has grown to manage in excess of $2.1 billion in equity capital through a number of different investment vehicles. Perella Weinberg Partners’ Asset Based Value Strategy can deliver significant capital, technical expertise and infrastructure in a wide range of asset classes and structures, including both real and financial assets. Capital for the Strategy is contributed by, among others, a diversified group of institutional investors who seek to invest in compelling opportunities at favorable valuations.

About Perella Weinberg Partners:
Perella Weinberg Partners is a leading independent, client-focused financial services firm providing advisory and asset management services to a broad, global client base, including corporations, institutions and governments. The Advisory business advises clients on mergers, acquisitions, defense advisory, financial restructuring, private capital raising, and pension matters. The Asset Management business includes a suite of hedge fund strategies, private investment funds (including real estate) and outsourced CIO solutions. Together with its affiliates, the Asset Management business has capital commitments and managed assets of approximately $8.6 billion. With more than 400 employees, Perella Weinberg Partners maintains offices in New York, London, Abu Dhabi, Austin, Beijing, Denver, Dubai, and San Francisco.

About Caribbean Property Group
Caribbean Property Group is one of the leading real estate investors, and asset managers in the Caribbean and Central America. Since its founding in 1998, CPG has acquired, developed, or redeveloped approximately $2.2 billion of real estate assets in the Caribbean and Central America. The firm maintains offices in New York City, West Palm Beach and San Juan, Puerto Rico.

Perella Weinberg Partners Media Contacts
Kara Findlay
Perella Weinberg Partners
212-287-3197

Renée Soto/Marisa Bricca
Sard Verbinnen & Co
212-687-8080

Caribbean Property Group Media Contact
Barry Breeman
212-479-6812

Do you want exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more? Get your FREE trial to Buyouts! Or subscribe now!