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Bankia Signs Property Developer Loans Worth €450M in 2018

2 January 2019 – Eje Prime

Bankia is consolidating its return to the property development sector. The bank signed loans worth €450 million for the construction of homes during 2018, its first year back in the real estate business after the restrictions imposed by the European Commission, as a condition for saving the company from bankruptcy, came to an end.

During the year that just ended, Bankia signed several financing operations with real estate developers to construct 2,200 homes in total in Madrid, Cataluña, the Community of Valencia, Andalucía and the Balearic Islands. With these figures, the bank doubled the expectations that it had set itself when it re-launched in the real estate sector, according to reports from the entity in a statement.

Following the results of the first year, the entity chaired by José Ignacio Goiriogolzarri says that it is carrying out its activity “in accordance with the new standards of prudence in the real estate sector, which includes a requirement for adequate marketing stages and the comprehensive control of the development of projects”.

The €450 million financed in 2018 forms part of Bankia’s strategy to try to re-conquer the property developer sector and achieve a market share of 8% by 2020.

Bankia was rescued in 2012 with public aid and sanctioned by Brussels to refrain from participating in the real estate market for five years as a condition for receiving some of the capital that was used to rescue it from financial crisis.

Original story: Eje Prime

Translation: Carmel Drake