Banco Popular has hired the consulting company KPMG to lead the sale process of the management of the real estate assets, properties, plots and credits that it has excluded from its balance sheet and transferred to the bad bank. Popular joins the current started by other institutions that have done the same previously. What has been place on the market is the management, not the ownership of the assets which will continue belonging to the bank.
KPMG has handed out basic information to thirty potentially interested parties, so that those who have decided may analyze in depth the conditions of the sale, so as to be able to present a non-binding offer as a first step.
The handed information refers to the volume of assets whose sale needs to be managed; the different types (apartments, offices, buildings, garages, trade premises, land, credits…) and the means offered by the bank to do so and which refer to the staff in charge of that activity and the offices where the assignment needs to be carried out.
Those who have received this information have between one month and one month and a half to analyze it and decide whether they find it interesting or not. It would be reasonable to end up with around ten firms that present a non-binding offer, so that a second round of contacts may be started with the objective of presenting a final offer. The final result should not be known before the end of December.
The approach of the sale is very open, in view of the increase in the number of companies specializing in this type of activity and the different operations already carried out by other institutions.
(…) Popular seems to be ready to study different offers as it can either get rid of all the management company with offices and staff, or it can accept, if the buyer is one of the funds that have already acquired other management companies, the cession of the company, without the transfer of staff or offices.
In this early stage it is not possible to define the approximate price of the operation and the earnings that Popular may obtain.