BBVA Puts on Sale Portfolio of 800 Properties

25/01/2014 – Expansion

BBVA guns it with two divestments destined for the foreign funds. The entity chaired by Francisco González explores the last leftovers to launch on the market two non-strategic portfolios: one of property and the other of bad customer debt.

The bank and its advisory assistant, KPMG, will give the green light to the transaction in upcoming days, although they have already sounded out the possible interest of the opportunistic funds, (…). This sort of transactions, classic of BBVA, are booming in Spain due to the growing interest of the foreign funds in our market.

(…) The bank will sell up to 800 flats included into the bigger portfolio, an operation similar to the one BBVA conducted in summer. Then, it transferred 1.000 properties valued at 100 million Euros to the U.S. hedge fund Baupost Group.

(…) The property transfers marked by great discounts to the international funds have been almost banned. Transactions like the current one show (…) that hitting the bottom by the housing prices might be near. Except for BBVA, Sabadell and Sareb other banks target at the sale of the houses exclusively through their network of minor banks.

Change in Strategy

The market gossips that the portfolio consists of the assets that the bank intended to sell in 2012, in a transaction called Camelia Operation. (…). Camelia has been probably cut into smaller pieces at higher prices.

By the sale of the other portfolio consisting of non-paid consumer loans (…) worth 180 million Euros, the bank could recover between 3% and 6% (…).

The bank chaired by  Francisco González conducted a smiliar transaction in mid 2013. It transferred 300 million Euros to the collection platform Savia Asset Management of Javier Botín (…) and to the U.S. hedge fund York Capital. The portfolio included 144.000 consumer credits and enjoyed interest of 15 funds. (…) BBVA is not going to get rid of its real estate entity Anida, although many other banks did so (for instance, Santander, Popular, Bankia or CaixaBank).

Source: Expansión