MADRID—Spanish officials managing soured assets from the country’s real-estate collapse announced their first big property deal, choosing Miami-based private-equity firm H.I.G. Capital to buy a majority stake in a package of 939 homes known as Project Bull.
Officials said the property deal, one of the most closely watched in Europe this year, priced the portfolio at €100 million ($133 million).
The properties were transferred to a Bank Asset Fund, which provides a favorable tax regime to investors, officials said. H.I.G.’s Bayside Capital agreed to take a 51% stake in the fund. Spain’s “bad bank,” the government-run asset-management firm known as Sareb, will retain a 49% stake.
H.I.G. Capital beat rival bids from Lone Star Funds, Apollo Global Management LLC,APO -0.70% Colony Capital LLC and a joint offer by Centerbridge Capital Partners LP and Cerberus Capital Management LP, people familiar with the transaction said.