The new business plan of the bad bank will be outsourced. Belen Romana, president of Sareb has decided to outsource the design of the new strategic lines, according to sources close to the bad bank.
The script chosen six months ago for the first business model for Sareb, which was drafted with the assessment of Alvarez & Marsal, repeats itself. But at that time the bank did not have its own team and it depended on the Restructuring Fund and on external companies. Now with an appointed executive team, it was expected that Sareb would prepare its own business plan.
Romana has offered this contract to the main advice companies, although KPMG has a head-start due to its real estate and financial experience. The consulting company declined any comments. PwC also was a strong candidate. This agency has already played a very active role in the design of the bad bank, along with Alvarez&Marsal, Cuatrecasas and Nomura. The fact that it has just obtained Sareb´s audit could hinder the company in this new tender.
The business plan has been one of the main conflict points Romana has encountered since her arrival to Sareb. The president of the company and, especially, the general director, Walter de Luna, did not share the guidelines of the previous plan, and were looking for one which would adjust to their forecast. This is why the sector finds it confusing that they hire a third party to carry out this task.
This option will provide credibility among foreign investors, who are still negotiating their participation in the company. It will also liberate the few employees Sareb has so that they can concentrate on classifying the assets entering the company and designing credit and properties packages to be sold to investors.
There are certain shareholders and potential investors who are confused by the decision of drafting this new business plan. Especially current shareholders, who deposited capital at the end of December based on a plan which guaranteed an annual profit of 13-14% during the 15 years of operations of Sareb.
Financial sources explain that Romana believes that the current business plan is rather optimistic in reference to the forecast in real estate prices.
Once this contract is solved, all consulting agencies hope that Sareb will continue offering work within the sector. The real estate assets and the credits which were transferred by the nationalized banks still need to be revalued. Consulting agencies hope that Romana will fragment all assets in portfolios, creating work teams afterwards. The valuation of these assets is basic to determine the level of gains or losses which can be obtained by the bad bank in future.
On the other hand, Iberdrola is detailing its incorporation to Sareb in the capital extension which will take place at the end of February, Alicia Crespo informs. The company is trying to attract the first shareholder which is not related to the financial sector.