• Transaction / Assets
  • Seller
  • Buyer
  • € MM

Popular Gains 415 Million Euros by Selling its Real Estate to Two Funds

After four weeks of intense negotiations, Popular and the two funds, Värde Partners and Kennedy Wilson, practically have closed the operation of transferring Aliseda, the real estate company belonging to the Spanish bank. The entity will earn 415 million Euros, out of which between 300 and 350 millions form the capital gains.

With the disbursement, the foreign funds buy 51% of the company adjacent to Popular which will hold 49% of shares.

The company will be responsible for the foreclosed assets and credits destined for Popular development management. At the moment, the total value of the properties in charge aims at 6.500 million Euros and of the loans at 9.350 million Euros. (…)

Aliseda premises will continue to be found on the Recoletos Street in Madrid, where the old offices of Banco Pastor have been located before. The real estate company hires about 300 people.

On the side of Popular, the advisory companies KPMG and Lazard were involved, and on the side of Värde Partners and Kennedy Wilson – PwC and Clifford Chance.

Another 25 foreign funds have been interested in the operation, like Centerbridge, Cerberus, Fortress, Lone Star or WL Ross.

Via the purchase Värde Partners and Kennedy Wilson became pacesetters of the bank dwellings management in Spain, as they have bought also Catalunya-Caixa Inmobilaria in summer, for between 30 and 60 million Euros. (…)

Popular is about to achieve the capital gains amount targeted for the year 2013 in its strategic plan set for 600 millions. In the first quarter the bank earned 370 millions and now the mentioned 300 thanks to the sale of Aliseda.

Source: Expansión

Original Story:

Translation/Summary: aura