Popular & Novagalicia Execute Debt & Seize San Jose´s RE Property

21/03/2014 – El Confidencial

Grupo San José has come to an agreement with principal lenders that granted a €2 billion loan to the construction firm in 2009. By virtue of assignment of payment, the banks received real estate assets. (…).

According to sources with knowledge of the negotiations, the operation will involve splitting San José into two divisions. The first one, inclusive of housing and land development assets, has been bringing losses to the company for the last six years. The other consists of construction assets that are much healthier in terms of toxicity.

The first step determined in the agreement between Jacinto Rey and the banks´ steering committee is the transfer of housing development activity to the lenders that could swap €1.6 billion for the branch´s shares. On the other side, the businessman would receive the construction company (…).

Among the lenders there are large banks like Banco Popular to which the firm owes €475 million, Novagalicia (€330 million), Santander (€260 million), Barclays (€186 million) and BBVA (€130 million). The entities that granted to San José loans of less than €100 million are: CaixaBank, Banco Sabadell, Catalunya Banc, Caixa Geral, Unicaja, Eurohypo, Ceiss, Caja3 and Kutxa.

Moreover, Sareb awaits return of its €186 million lent to the construction company by another entity but inherited by the bad bank. (…).

San José gained €427 million throughout 2013, that is by 14% less than a year before. (…) Its ebitda declined by 63% to €11 million, while the gross profit fell by mere €2.8 million (88.3% less). What is more, the real estate company had a turnover of €85 million (depreciation by 6.4%) and lost €209 million ( by 24% more). (…).

 

Original article: El Confidencial (Agustín Marco)

Translation: AURA REE

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