Blackstone Buys Bankia´s Holding With Stakes in 26 Real Estate Firms

16/07/2014 – Expansion

Private equity fund Blackstone has become one of the most prominent players on today´s Spanish real estate market. After having bought 1.860 subsidized homes from the city of Madrid (EMVS) last year, now it is at the verge of closing the purchase of Intermediación y Patrimonios.

The company belongs to Bankia and it serves as a holding gathering minority stakes of 26 societies. Each of them is linked to at least one housing development and apart, the portfolio includes 3.000 dwellings on diverse stages of development (some of them are finished, some under construction and some just started).

Among the partners having a share in Intermediación y Patrimonios noteworthy are Hercesa, Ferrocarril, Pryconsa, Gestesa, OHL and Bigeco.

The stakes ended up in Bankia´s portfolio inherited from old Caja Madrid. Known as the “Screen Project“, the sale which forms a part of a greater divestment plan of the bank is said to involve €30 million.

Companies subject to the transaction demonstrated their dissatisfaction as Bankia gave them no chance of buying the shares. Some of them started to explore legal possibilities of excercising the pre-emptive right.

Blackstone is fully aware of the €400 million indebtness the housing developments drag behind. In order to develop them, companies of Intermediación y Patrimonios solicitated loans which now belong to Sareb. The bad bank has already placed them inside the “Pamela” portfolio put up for sale at €220 million some time ago.


Original article: Expansión (by R.Ruiz & G. Martin)

Translation: AURA REE