19 September 2018 – Eje Prime
Cerberus is strengthening its presence in the Spanish real estate sector with the purchase of a large portfolio of assets from Banco Santander. The US fund has reached an agreement with the financial entity to acquire a package of 35,700 residential properties for €1.535 billion.
The batch transferred by the Spanish bank has a gross value of €2.791 billion. The investment firm has been awarded the package in the end after significantly reducing the figure of €3 billion that it was expected to pay for the portfolio when the negotiations began.
The president of Banco Santander, Ana Botín, said in a statement that the exact percentage of the stakes that each party will hold in the new company that will be constituted following the formalisation of the transaction has not been determined yet. Nevertheless, Cerberus will control between 51% and 80% of the share capital, according to the senior executive.
Botín, who has indicated that the sale will have an “immaterial” impact on the results of the bank, expects the agreement to crystallise completely during the last quarter of this year or the beginning of 2019.
Original story: Eje Prime
Translation: Carmel Drake