Belen Romana, the chairwoman of Sareb, told at yesterday´s meeting with investors in London that in 2015 the bad bank “will change radically”. The entity will evolve from trading model to obtaining maximum value of its assets via asset and loan management.
“For the moment, the bailed-out banks which transferred the assets sold and managed them themselves in agreement with rules imposed by the administration. From 2015 on, new management contracts will bear interesting incentives which hopefully will fuel more efficient portfolio management”, Romana explained.
The meeting was attended by 70 representatives of various funds. In regard to the upcoming management contract bidding, Sareb´s chairwoman pointed out that the candidates “must know the Spanish market inside out, have experience in this kind of service and be overally prepared to take the management over in Janaury next year.”
As Sareb does not specify deadlines, asset lots or commissions, “bidders are free to submit their own offers. Some of them will prefer property, while others loan management. Terms will vary between 3 and 10 years.”
Moreover, Romana highlighted that if management of Sareb´s €50 billion worth of assets was given only to one property servicer, the bad bank would not be able to compare the outcome. Therefore, from 4 to 5 managers will sign the lucrative contracts. Right now Sareb pays over €200 million annually to 9 real estate servicing companies.
Original article: Expansión (by Roberto Casado)
Translation: AURA REE