Popular Considers Buying Back Aliseda

19 October 2016 – Reuters

Banco Popular said on Tuesday that it is considering buying back its real estate management company Aliseda as part of its real estate asset deconsolidation process.

Aliseda currently manages the Banco Popular Group’s properties and the bank holds a 49% stake in the entity; the remaining 51% is held by the investment funds Värde Partners and Kennedy Wilson.

“This is one of several options being considered, but so far, the bank’s decision-making bodies have not made any final resolutions”, said the financial institution in a statement.

Popular sold the majority stake in Aliseda in 2013 in an operation that, according to sources, amounted to around €800 million.

Popular said last month that it is considering the creation of a vehicle to group together the properties owned by the entity, which may list on the stock exchange.

The value of these assets would amount to €6,000 million and according to analysts, the integration of Aliseda into the project would allow it to guarantee constant cash flows thanks to the funds obtained from the rental of the properties.

Banco Popular, which is currently financing 100% of these proeprties, said that the new subsidiary would look to raise financing in the capital markets.

Original story: Reuters

Translation: Carmel Drake

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