BBVA Portugal sells a real estate and credit portfolio to funds managed by LCM Partners; Link Financial Portugal will manage assets. Legal advisors: CMS Portugal and Vieira de Almeida.
BBVA, Portugal Branch has sold a portfolio of real estate assets and loans to entities belonging to funds managed by LCM Partners, marking a notable transaction in the Portuguese real estate and credit markets. The transfer of assets—executed through BBVA’s real estate vehicle Anidaport—was supported by top-tier legal advisory teams on both sides: CMS Portugal advised BBVA, Portugal Branch, while the banking and real estate teams at Vieira de Almeida (VdA) represented LCM Partners. Link Financial Portugal, an asset manager associated with LCM Partners, will oversee the management of the acquired portfolio.
What was announced
• Seller: BBVA, Portugal Branch, through its real estate company Anidaport.
• Buyer: Entities belonging to funds managed by LCM Partners.
• Asset type: A mixed portfolio of real estate and loans (credit portfolio).
• Asset manager: Link Financial Portugal, affiliated with LCM Partners, will manage the acquired portfolio.
• Legal advisors: CMS Portugal advised BBVA; Vieira de Almeida advised LCM Partners. Data protection issues were addressed by specific CMS team members.Legal teams and specialist involvement
The transaction involved multiple specialist teams and lawyers:
• For BBVA, Portugal Branch (CMS Portugal):
• Coordinating partners: José Manuel Silva Nunes (Real Estate) and António Payan Martins (Banking and Finance).
• Tax partner: Nuno Figueirôa Santos.
• Associates and supporting legal professionals: Filipa Gaspar Branco (Senior Banking and Finance Associate), Luã Brito Malta (Real Estate Associate), Duarte de Castro Rodrigues (Real Estate Intern), Gonçalo Sampaio (Banking and Finance Associate), and Henrique Mafra Falcão (Banking and Finance Intern).
• Data protection: João Leitão de Figueiredo (TMC Partner) and Ricardo Pintão (TMC Senior Associate).
• For LCM Partners (Vieira de Almeida):
• Coordination by the Banking and Real Estate teams.
• Coordinating Managing Associate: Sebastião Nogueira.
• Participation: Managing Associate Pedro Moraes Vaz and Associate Francisco Resina da Silva.The involvement of specialized banking, finance, real estate, tax, and data protection lawyers reflects the transaction’s complexity and the need for cross-disciplinary legal expertise in transferring mixed portfolios of loans and property.
Why banks sell real estate and credit portfolios
The BBVA–LCM Partners transaction fits within a broader trend where banks divest real estate and loan portfolios to specialist investment managers and funds. Reasons behind such sales typically include:
• Balance sheet optimization: Banks may sell loans and non-core real estate to improve capital ratios and redeploy resources to core activities. Disposing of illiquid or high-management-cost assets can free capital for lending and strategic investments.
• Credit risk management: Transfer of credit exposures, especially non-performing or underperforming loans, can help banks reduce risk concentrations and improve asset quality metrics.
• Strategic refocusing: International banks often streamline operations in specific markets by handing over management of localized assets to specialized funds and managers.
• Market opportunity for investors: Investment funds and asset managers often seek to acquire portfolios at scale to generate yields through active management, restructuring, and disposal of underlying assets.It is important to note that the announcement does not indicate whether the loans were performing or non-performing. The portfolio is described as a mix of real estate and credit assets managed by Anidaport, BBVA’s real estate company in Portugal.
Who are the key parties?
• BBVA, Portugal Branch: Part of the BBVA group, the branch operates banking services in Portugal and uses Anidaport to manage a real estate portfolio. Banks like BBVA often restructure or reduce real estate exposure to meet strategic and regulatory objectives.
• Anidaport: The real estate arm used by BBVA, Portugal Branch, as the vehicle for holding and disposing of property assets. Anidaport was the seller in the current transaction.
• LCM Partners: Manager of the funds that acquired the portfolio. LCM Partners is an investment manager that operates funds targeting real assets and credit opportunities. Funds managed by LCM typically partner with local asset managers and legal advisors to execute acquisitions and oversee asset management.
• Link Financial Portugal: An asset manager affiliated with LCM Partners, tasked with managing the purchased portfolio in Portugal. Link Financial Portugal brings local market expertise for asset workout, leasing, repositioning, or divestment strategies that can unlock value for fund investors.
• CMS Portugal: Part of the international CMS law firm network, CMS Portugal provided comprehensive legal advice to BBVA on real estate, banking and finance, tax, and data protection matters.
• Vieira de Almeida (VdA): A leading Portuguese law firm, VdA provided legal counsel to LCM Partners, primarily through its Banking and Real Estate teams.Market implications for Portugal real estate and credit markets
The sale of a portfolio of real estate and loans by a significant international bank to funds managed by a private investment manager can have multiple implications for the Portuguese market:
• Increased activity for real estate funds: The transaction underscores continued investor appetite for Portuguese real estate and credit assets. Funds managed by specialized managers often bring capital, active asset management, and disposition strategies that can stimulate secondary markets for property and loans.
• Professional asset management: With Link Financial Portugal managing the portfolio, assets may undergo active restructuring, sales, or repositioning. Specialized asset managers typically seek to improve cash flows through leasing, development, or targeted sales, which can bring additional supply and transaction activity to local markets.
• Liquidity channel for banks: Sales of portfolios create liquidity for banks and enable redeployment of capital into other lending activities or strategic initiatives in Portugal or elsewhere.
• Potential borrower impact: Depending on the type of loans transferred and the management approach by the new owner, borrowers may experience changes in servicing contact points, loan restructuring negotiations, or sale processes. Asset managers generally aim to maximize recovery or return, which can include negotiated workouts, modifications, or distressed asset sales where applicable.
• Data protection and legal safeguards: The involvement of data protection specialists in the BBVA legal team highlights the sensitive nature of transferring borrower and asset data during portfolio sales. Compliance with local and EU data protection laws remains a priority.Why legal and data protection work matters in portfolio transfers
Selling loan and real estate portfolios involves numerous legal and operational steps beyond the purchase agreement. Key considerations include:
• Due diligence: Buyers conduct legal, financial, and tax due diligence on assets and loans to assess title, contractual obligations, environmental risks, borrower credit quality, and enforceability of security interests.
• Transfer mechanics: Legal frameworks determine how rights and obligations related to loans are transferred—whether through assignment, novation, or other mechanisms—and whether borrower consent is required.
• Real estate titles and encumbrances: Ownership and encumbrance checks on properties ensure that titles are clean and any liens or mortgages are properly addressed.
• Data protection: Transferring borrower personal data requires compliance with data protection regulations, including the EU General Data Protection Regulation (GDPR) and Portuguese law. Appropriate safeguards, notices, and contractual clauses are needed to lawfully transfer data to the buyer and asset manager.
• Tax planning: Tax implications may arise from the sale of real estate and loans, especially where capital gains, transfer taxes, or cross-border considerations exist. The presence of a tax partner on BBVA’s advisory team reflects the importance of tax advice in such deals.
• Servicing arrangements: The buyer may take over loan servicing directly or engage a third-party servicer—often with transitional arrangements to ensure continuity for borrowers.Sector trends: portfolio sales, secondary markets, and investor appetite
Over the past decade, European banks have regularly restructured balance sheets and sold loan books and real estate assets to funds focused on creating value from underutilized or underperforming assets. These transactions reflect several broader trends:
• Growth of specialist investors: Asset managers and funds that specialize in real estate and credit have developed the capacity to acquire and manage large portfolios, often working with local servicers to optimize outcomes.
• Secondary markets for loans and real estate: Liquid secondary markets for loans and property enable banks to offload exposures and for investors to access diversified portfolios at scale.
• Regulatory environment: Post-crisis regulatory reforms increased capital requirements and supervisory scrutiny, incentivizing banks to reduce non-core exposures and strengthen capital positions.
• Active asset management focus: Buyers often aim to increase returns through active asset management, including repositioning assets, renegotiating leases, or divesting in parts to realize value.What to expect next
• Asset management plan implementation: Link Financial Portugal will likely establish asset management plans for the acquired portfolio, which could include appraisal, stabilization, leasing, refurbishment, resale, or loan workout strategies depending on the composition and condition of assets.
• Market signaling: This transaction may encourage further portfolio sales or partnerships between banks and specialist funds in Portugal, particularly if investor appetite and pricing conditions remain favorable.
• Borrower communications: Affected borrowers should receive formal notifications about the transfer, stay alert for official communications from the new servicer, and seek legal or financial advice if they face loan restructuring or repayment changes.Final observations
The sale of BBVA, Portugal Branch’s real estate and loan portfolio to funds managed by LCM Partners is an example of how banks collaborate with specialist investors to manage and realize value from property and credit assets. With Link Financial Portugal set to manage the portfolio and seasoned legal advisors guiding the transaction, the deal reinforces the vital roles of asset managers and legal counsel in complex portfolio transfers.
While the transaction announcement did not disclose financial details or the precise composition of the portfolio, the structure and advisory teams involved indicate a carefully coordinated transfer with attention to real estate, banking, finance, tax, and data protection issues. For market participants and observers, the deal is another sign of continued investor interest in the Portuguese real estate and credit markets—and of the ongoing evolution in how banks manage balance sheets and risk in the region.
For borrowers impacted by the portfolio transfer, key steps are to verify communications from their current lender, understand any change in servicing relationships, and seek professional advice if loan terms or enforcement actions are proposed by the new owner. For property market observers and investors, watching how Link Financial Portugal executes asset management strategies will offer insights into pricing, liquidity, and opportunities within the Portugal real estate sector.
This transaction demonstrates the growing sophistication of cross-border real estate and credit deals, and the importance of specialized legal, tax, and data protection counsel in ensuring compliant and effective transfers. As the Portuguese market continues to draw interest from institutional investors, further transactions of this type are likely—each with implications for banks, borrowers, and the broader real estate ecosystem.
