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Notice to the holders of €250,000,000 5.25% Senior Secured Notes due 2022 and €225,000,000 Floating Rate Senior Secured Notes due 2022 (the “Notes”)

Fixed Rate Notes Regulation S: ISIN XS1716821779, Common Code 171682177, Rule 144 A: ISIN XS1716821340, Common Code 171682134; and Floating Rate Notes Regulation S: ISIN XS1716822231, Common Code 171682223, Rule 144 A: ISIN XS1716821936, Common Code 171682193 of Haya Finance 2017, S.A. (the “Issuer”)

On April 27, Haya Real Estate and Bankia have signed a novation of their previous REO management contract. This novation grants Haya the administration, management and commercialisation of Bankia’s and Bankia Habitat’s Real Estate Owned Assets (REOs), and also includes those REOs of Bankia’s recently merged entity Banco Mare Nostrum (BMN). The perimeter of the REOs that Haya will service is open (i.e., variable whereby the flow of new REOs will also be serviced by Haya).

The novated contract has a minimum duration of 10 years and includes an early termination right for Bankia and corresponding make-whole payment provisions in Haya’s benefit.

The Assets under Management (AuMs) within the initial perimeter of the contract as of May 1, 2018 consist of €5.4BN. The management of the outstanding real estate developer loans (REDs) under the previous contract will be managed directly by Bankia in the future.

In connection with the signing of this contract novation with Bankia, Haya will pay an upfront fee in the amount of €40.8MM, and a deferred payment of €66.8MM over the coming months, which it expects to finance through cash flow generated in the business.

Additionally, and with regards to an article published in the Spanish media today speculating about Sareb’s future plans with respect to the portfolio managed by Haya, we confirm the following:

  • Haya has not received any official notice about any change in the scope or term of our contract with Sareb. Haya works closely with Sareb in order to accelerate the speed of their recoveries according to our joint business plan, as established in our current servicing contract, which runs through December 2019.

  • Haya’s contract with Sareb includes certain protections for Haya in cases of different contingencies, including certain portfolio sales or terminations.

Haya Real Estate, S.A.U.
May 2018

Esta nota de prensa contiene información sobre proyecciones futuras en relación con la posición financiera y planes de operaciones futuras en relación con Haya Real Estate. Cualquier información distinta de aquella relacionada con datos históricos debe entenderse como proyecciones futuras. Estas proyecciones futuras deben considerarse válidas únicamente a fecha de hoy y están sujetas a numerosos factores que podrían causar desviaciones respecto a dichas proyecciones futuras. Haya Real Estate no será responsable y no tendrá ninguna obligación en relación con la actualización y/o revisión de dichas proyecciones futuras (excepto en la medida en que pudiera estar legalmente obligada a ello).

About Haya Real Estate

Haya is the leading company in the management of Non-Performing Loans and Real Estate Owned assets (NPLs and REOs, respectively) in Spain. The company manages assets as well as financial and real estate vehicles for a wide variety of clients, from financial institutions to international investors. In total, Haya is responsible for €31.8 billion of AuMs (Assets under Management).

Haya offers products and services covering the entire value chain of NPLs and REOs. Its NPL services focus on the management of corporate or individuals’ debt, with a high degree of specialization in the valuation, management and recovery of loans and the conversion of non-performing loans into real estate owned assets. Real estate services are delivered to a portfolio of ~189,000 assets under management, and they range from asset boarding, property management, maintenance and valuation to its commercialization. Haya's services are fully integrated into the lifecycle of each NPL / REO, and also involve portfolio advisory, underwriting capabilities, land management, completion of works in progress and securitization.

Haya’s main clients include financial institutions such as BBVA, Caixabank (former Bankia), Cajamar, Liberbank, Sareb and international investment funds such as Cerberus Capital Management. The company employs ~863 professionals, featuring an extensive sales network that covers the entire Spanish geography. Haya has invested ~€63 million euros in cutting-edge technology, data analysis and IT tools focused in process efficiency and performance delivery.

Contact details:

Investor Relations:

+34 917 929 777

Media Relations:

+34 91 702 71 70