La Caixa already knows what it could earn for the portfolio of 12000 properties it has placed in the market, the biggest joint package put on an auction by a financial institution. The financial group has received offers that range from 700 to 800 million Euros, half of their value in books, as indicated by sources close to the operation.
Therefore, the discount buyers are claiming in order to acquire this real estate portfolio is around 50%, an adjustment that according to some investment banks could reach even 60%. Those who have been in touch with Morgan Stanley, advisor of La Caixa, in order to present their non binding offers are Apollo, Colony Capital, Centerbridge, Lone Star, Cerberus, Bridgepoint and Fortress.
A combination of vulture funds, more aggressive when it comes to bidding, and venture capital funds, which usually have a long term vision and are less demanding in their assessments. This mixture could benefit Caixabank when it comes to try a higher price, as the discounts demanded by vulture funds usually leave no room for negotiation.
Along with the package of properties, La Caixa, who has declined any comments on this operation, would also like to get rid of 51% of the capital of Servihabitat, the real estate company that manages all assets the bank has had to assume due to the non-payment from customers. According to different sources, the valuation of this company ranges between 130 and 150 million Euros, nearly the double amount of what Bankia could earn for its subsidiary.
Therefore, the group presided over by Isidro Fainé hopes to earn around 900 million Euros for an operation of financial deleverage that will be an important reference for the rest of banks who want to get rid of all assets related to the construction business and specially for Sareb, the bad bank who has taken over more than 300.000 mortgaged properties and nearly 100.000 properties of nationalized banks.
The company presided over by Belen Romana wishes to get rid of assets valued at 1500 million Euros, 150 of which should be sold this same summer. This is why the transaction carried out by La Caixa will establish the price of the first sale by Sareb, a portfolio of assets that reaches 11357 million Euros. Sareb also has a portfolio of failed loans for nearly 40.000 million Euros.
If La Caixa closes its operation, it will sell in one strike as many properties as all banks have sold in the first quarter of 2013. Between January and March, institutions such as Sabadell, Santander and BBVA have sold around 14000 real estate assets. All disinvestments have been signed with an average discount of 51%, which depends on the type of property – principal or second residence, location (coast or city) and closeness to great capitals.
The properties currently sold by Servihabitat reached its balance through assignments in payment and refinancing of real estate developers. Servihabitat was transformed into the bad bank of La Caixa when this one transferred its financial business to CaixaBank, and the new bank could be listed in the stock exchange with no strings attached.
The same financial sources mentioned above have declared that the properties included in this operation are all principal residences, in perfect condition and located in Spain, mainly in Madrid, Barcelona and other capitals.
Source: El Confidencial