Interview Synopsis

Haya Real Estate – Sareb renewal dynamics & NPL market outlook

  • Credit
  • Financials
  • Europe

The race to service Spanish bad bank Sareb’s EUR 30bn portfolio is set to be decided this quarter, with Haya Real Estate still in the running.* According to a former executive at the company, Haya has “strong skills and assets” to retain its contract with Sareb. However, failure to do so would see it slide to fifth or sixth position among the big servicers in Spain, they said.

Sareb renewal key to Haya Real Estate’s competitiveness

In recent years, Haya has shifted from servicing non-performing loans (NPLs) to real estate-owned (REO) as a result of changes caused by COVID-19 and its failure to make inroads in acquiring secondary portfolios. The specialist said Haya is now predominantly an REO servicer, with nearly 60% of its AUM now REOs. 

The specialist told us this change represents an opportunity for Haya as it looks to renew its contract with Sareb. The proportion of REOs in Sareb’s portfolio has increased compared to previous years, and as such, gives Haya an advantage. Haya has also invested in REO management systems, making it easier for it to incorporate new clients, and adds to the “strong skills and assets” it already has.  

However, the specialist said this year’s bidding is competitive, with five servicers still in the running. Rival bidders Intrum and Altamira have grown “very strong” since 2019, and the specialist said if Sareb were to choose just two servicers to manage its portfolio, it would likely be them.

Although losing the contract would not have a huge impact on Haya’s P&L and cash flow, the specialist warned it could have serious consequences on its reputation and competitiveness. Loss of the contract would confirm Haya as a “REO-only servicer” and impact the size of its debt recovery team. 

The specialist also speculated that while the economic impact wouldn’t be too great, it could lead Haya to be integrated, consolidated or acquired by another player because the reduction in AUM would be “significant”.  

To access all the human insights in Third Bridge Forum’s Haya Real Estate – Sareb renewal dynamics & NPL market outlook Interview, click here to view the full transcript.


Related Transcripts

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

For any enquiries, please contact