Step by step, the slow digestion of the Spanish real estate collapse advances, and banks continue to get rid of the awarded properties as well as of the doubtful credit portfolios.
Recently BBVA has sold a portfolio of nearly 1000 residential properties to the U.S. hedge fund Baupost Group, with a value in books of 100 million Euros. Although the selling price is unknown, this type of transactions usually includes important discounts.
The operation is part of a more ambitious one started in 2012 and called Camelia that planned to sell 1.500 million Euros in doubtful loan and awarded assets.
Last July, BBVA transferred 300 million Euros in default consumer credits to the fund York Capital and to Savia Asset Management, the managing company from Javier Botín. BBVA has nearly 6.400 million Euros in awarded assets and pragmatism imposes, as it is necessary to cleanse a highly provisioned balance sheet.
Other wholesale operations in the financial sector have been the ones from Santander in 2012, selling 500 million Euros in mortgages to Cerberus and Lone Star; the one from Sareb this year, transferring 51% of a fund of banking assets to HIG Capital for 100 million Euros and the more recent one from Banco Sabadell, that has gotten rid of a lot of 953 real estate assets, with a value in books of 88 million Euros.