• Transaction / Assets
  • Seller
  • Buyer
  • € MM

Popular forms an alliance with two funds and sells its real estate company for 800 million Euros.

Two U.S. funds will manage from now on the real estate assets from Banco Popular. The institution presided over by Angel Ron closed last week the transfer of its bad bank, Aliseda, for  800  million  Euros.  This  price  values  the  management  of  the  properties  and  the developers credit of the group, but it is still necessary to determine how much Popular will receive for the operation, as the bank will still hold a participation in the new company. Although they are still negotiating, it seems that both funds, Värde Partners and Kennedy Wilson, will get 52% of the company that will receive the business from Aliseda, and Popular will get 49%. Should this be the case, the U.S. investors would pay 400 million Euros for Aliseda.

The price of the operation, advised by KPMG, boosted last week due to the reception of counteroffers from interested funds. The price that was being mentioned in the first stage of non-binding  offers  reached  650  million  Euros.  Centerbridge  and  Cerberus  were  the investors that were the closest to get Aliseda, although WL Ross, Lone Star and Fortress also took part in the negotiations.

Värde Partners and Kennedy Wilson will control the company to which both funds and the bank will transfer part of  their team. Popular could send the 300 employees that are currently working in the real estate company to this new company. On the other side, the funds  have  nearly 200  professionals in  Spain  from  the  acquisition of  CatalunyaCaixa Inmobiliaria, although it seems that there are no intentions of integrating both platforms.

The new location also needs to be decided. For the moment Aliseda is located in the center of Madrid, in the former headquarters of Banco Pastor.

What seems to be sure is that the operation will include the management of 9350 million Euros in credits for building and developments and the management and sale of awarded assets for a net value of 6500 million Euros. All assets will continue in Popular´s balance sheet.

Popular has not yet quantified the earnings it will receive for the sale. The institution intends to close 2013 with earnings for 600 million Euros, receiving already 370 million Euros in the first half of the year. (…)


Source: Expansión