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Real Estate Sector Starts Operations Worth More Than 8.8 Billion

6 September 2015 – El Economista

The real estate sector is in full swing and while many operations are done off-market, at least 8.8 billion in assets are expecting a buyer. Most of this amount, namely 85.79%, is held by financial institutions, that have put for sale important property portfolios.

The largest lot is that of Bankia, with a value around 4,8 billion euros. With this operation, the bank intends to dispose of the portfolio of foreclosed property assets not transferred to the SAREB and those awarded following their nationalization. For its commercialization, the firm has hired Credit Suisse and KPMG, who are conducting surveys among institutional investors.

For its part, Ibercaja, which is preparing to go public by the end of next year, has put on the market real estate assets valued at 2.3 billion euros, in three separate operations.

Banco Popular also wants a relief. In May, the bank chaired by Ángel Ron, submitted for sale a portfolio worth 450 million and expected to close the transaction before the summer. However, a decision to postpone the operation for several months was made, as the bids received from six investors showing interest (including Apollo, Blackstone, Goldman Sachs and Deutsche Bank) were below the marked minimum.

On the other hand, organizations like SAREB, Santander and BBVA have also taken for sale  debt portfolios associated with hotel assets amounting to about 670 million euros, and according to the experts consulted, reception/hosting by funds is still very good.

Among the individual assets, stands out Torre Espacio, one of the four skyscrapers located in the north of Madrid. Its owner, Grupo Villar Mir, hopes to procure 500 million with this transaction. Also in the capital and before the end of summer, the sale of Villa Magna Hotel, owned by the Portuguese family Queiroz Pereira, was considered closed. However, it now appears that negotiations with the Colombian Jaime Gilinski, willing to pay 190 million for it, have been complicated, therefore this asset remains on the market. In this same sector in a few months will move Merlin, which will put for sale hotels inherited through the purchase of Testa. These assets may have a value close to 400 million.

Moreover, such historic building as the Palace of Music in Madrid (Palacio de la Música) is still for sale. Mango offered up to 65 million for it, but negotiations were unsuccessful. The Administration is also active selling the grounds on Padre Damian, for which it could receive about 100 million.

Original story: El Economista

Translation: Lee La