Holidaymakers to Lease Apartments From the “Bad Bank”
4/07/2014 – Cinco Dias
The Management Company for Assets Arising from the Banking Sector Reorganization, known as Sareb, has come to an agreement with holiday real estate firm Pierre & Vacances on awarding the leasing of four residential complexes located in Alicante, Tarragona and Majorca.
In detail, the contract with Pierre & Vacances assumes management of apartments found in Benidorm Poniente in Alicante, Marina Torredembarra (Tarragona) and of two complexes in Majorca, Portomar and Vistalegre. Allegedly, more establishments will join the list this year.
According to the “bad bank”, Pierre & Vacances is going to administer the assets and pay a return to Sareb. As the tourist operator says, annual yield from holiday lease may bring between 3.5% to 5%. In turn, Sareb pursues at maximising the value of its REO.
The agreement has been signed for 10 years and gives the green light to the assets sales.
This year, the “bad bank” is going to invest €2.5 million in holiday property improvement and then benefit from the increase of foreign tourism in Spain and the rebound in residential investment by international buyers in specific coastal areas.
At the moment, Pierre & Vacances manages 240 Sareb´s apartments, but the number may be doubled in medium-term when other properties added. In 2013, Sareb earned €68 million on rentals and obviously would like to multiply the gains in the future.
Sareb´s CEO Jaime Echegoyen has enumerated advantages of the agreement which will allow the “bad bank” earn some turnovers and enhance the foreign demand thanks to the brand recognition and the international sales network of Pierre & Vacances.
Original article: Cinco Días (by L. S. & M. M. M.)
Translation: AURA REE