A friend told us, during a meeting that has been religiously fulfilled, for five years, every Friday at eight in the morning (the meeting lasts two hours), that our last article, entitled “Is the history of the properties of Novo Banco really like that? ”, was very innocent.

If we understand correctly, we were innocent because in this story of the NPL of Novo Banco, when we put the question on a strictly technical level, we would be ignoring the deals that exist, namely of properties that are bought for one price and offered for sale at another price superior (we emphasize put for sale and not sold. Anyone who is an expert property appraiser knows that it is not the same thing).

We maintain everything we stated in the previous article, adding what CIO of Whitestar Asset Solutions, André David Nunes, in the program “Business of the Week” of SIC Notícias mentioned about the poor quality of the portfolio of the famous Viriato project (as any NPL portfolio).

Continuing on the strictly technical plan, which is the plan on which the discussion should focus, we call attention to “VPGA 9 – Evaluation of portfolios, compilations and property groups” in the RICS Red Book:

“3.4 If a complete portfolio, or a substantial number of properties contained therein, were placed on the market at the same time, this could effectively flood the market, leading to a drop in prices. On the contrary, the opportunity to buy a particular group of properties can produce a premium. In other words, the value of the set can be greater than the sum of the individual parts, and vice versa.”

In the previous article we found that selling “wholesale” and in a short period should produce a discount.

In this article we conclude that the sale of a real estate portfolio must be cautious, so as not to “flood” it, obtaining more advantageous prices.

What “vultures” (a term that we don’t agree with, we prefer to call “Private Equity”, which is the technical term) are going to do is take out their wallets, perhaps investing in real estate, putting them up for sale in stages

Did Novo Banco have the time and money to do this, as it was sold?

And the vultures are to blame!