16/07/2014 – El Confidencial
Haya Real Estate, the company servicing the repossessed property of Bankia, decided to tidy the house up. The arm of vulture fund Cerberus Capital Management has hired KPMG to carry out detailed analysis of the units´ legal situation, from tax-paying to monthly rentals of their tenants.
According to sources with knowledge of the operation, Haya Real Estate suspects the thousands of Bankia dwellings foreclosed during the recession have not been administered well enough. Since September 2013, when Cerberus signed the contract on management of over €12.2 billion worth of real estate assets (inside the entity plus the €36.6 billion worth transferred to the third parties) with the bank, the fund has discovered many irregularities.
The main problem is that Bankia became the debtor of the State (its majority stakeholder) for failing to pay the IBI (Spanish Property Tax) for a part of the foreclosures.
If it hadn´t been enough, Cerberus detected irregularities in the payments to housing associations as they should have been amortized by the bank at the moment of repossessing the dwellings and the garage spaces. Finally, the fund has discovered that many tenants of the properties have fallen into default with their monthly rental payments.
On unearthing all these distortions, Haya Real Estate has hired KPMG that also acted as Bankia´s advisor at the transfer of the bank´s collection unit to Centerbridge and TPG among other funds.
The General Council of Certified Property Administrators estimate that Spanish banks owe the total of €256 million to housing associations charged due to default in payment after owning the properties as a result of evictions or real estate firms and developer debt execution. The amount owed to the owners associations represents 16% of the total that shall be paid to the housing associations.
Original article: El Confidencial (by Agustín Marco)
Translation: AURA REE