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Popular Sells Its Portuguese RE Manager For €72M

7 August 2015 – Expansión

Banco Popular is replicating the model it adopted for Aliseda in Portugal. The entity chaired by Ángel Ron has decided to sell a majority stake in its real estate and debt management company in the neighbouring country. Popular closed the operation on 9 June by selling the business to Quarteira, a company owned by funds of the US firm Carval, for €72 million.

The Spanish entity will maintain a 20% stake in the new company – Recovery to Business (Recbus) – which will take over the management of the real estate assets of the Portuguese banking subsidiary.

This operation has generated capital gains of €69.5 million for Popular: €55.6 million from the sale of the 80% stake in Recbus to Carval and €13.9 million from the revaluation of its retained 20% stake.

Sources at the Spanish entity stress that this transaction is positive for two reasons, since: “it makes the most out of the management of the real estate business in Portugal, benefitting from the experience of the partner”; and “it allows Banco Popular Portugal to focus on its traditional commercial banking activity”.

This agreement replicates the deal that the bank reached with Värde Partners and Kennedy Wilson at the end of 2013, when it sold a 51% stake in Aliseda for €810 million.

The growth of Aliseda

Aliseda is currently in an expansion phase after earning €68 million last year. Its shareholders – Värde, Kennedy and Popular – have signed an agreement to increase its capital, to repay debt.

Aliseda Inmobiliaria recorded revenues of €1,127 million during the first half of the year, according to Efe. The company sold more than 6,400 properties and hopes to generate record breaking revenues of €2,000 million in 2015.

Last year, the company sold more than 8,600 assets.

Of the assets sold, 44% were new build properties, 26% were second hand….and 14% were land.

Original story: Expansión (by J. Zuloaga)

Translation: Carmel Drake