Sabadell Wins $376.5 Million in Cerberus Property Dispute

Banco Sabadell SA won a lawsuit against Cerberus Capital Management LP over a deal struck linked to Spanish real estate assets, winning a €358 million ($376.5 million) award from a London judge.

The case centered on a real estate joint venture created by the Spanish bank and alternative investor in 2018. Sabadell alleged Cerberus should payout millions under investment agreements that were partly guaranteed by Cerberus. The defendants countered that nothing was payable under the agreements.

A London judge sided with Sabadell on Wednesday and ordered the multi million euro award plus interest. A spokesperson from Sabadell declined to comment. Representatives from Cerberus didn’t immediately respond to a request for comment.

“This will contribute towards a further improvement in the bank’s asset quality and risk profile,” a Sabadell spokesperson said.

The judgment comes at a time that Sabadell is fighting to stay independent after larger rival BBVA SA began a takeover attempt in May.

“Cerberus believes that the High Court failed to take into account, and failed to properly interpret, the conduct of the parties and material provisions in the governing investment agreements,” a company spokesperson said. It is considering whether to appeal.