Banco Popular de Puerto Rico will sell $500 million of construction and commercial real estate loans to a new joint venture. About 75% of the loans are non-performing and are part of a portfolio with a book value of $610 million.

The purchase price is equal to 47% of Banco Popular’s unpaid principal balance as of Dec. 31. The Brazilian lender will finance the venture with half the amount required for the loan purchase and the transaction is likely to close in the first quarter.

Click here for the release from Business Wire.