27/01/2014 – Expansion
The real estate market again calls attention of the bank, however still in a selective and progressive way. Santander, BBVA and Banco Sabadel will build 8.000 dwellings on their own land they possess in balance and that are situated mostly in Madrid, Catalonia, the Valencian Community, the Basque Country and Andalusia areas.
The majority of the lands, without development or with early halted construction works have been awarded to the entities as a payment of debts. According to the estimations, they are located in great value zones and are overprovisioned as a result of the coverages required by the Government´s financial reform.
Now, after seeing the signs of rewoken interest in the high value areas, the banks decided to develop the land with help of their real estate companies and put the homes on the market, (…) with significant discounts. (…).
Santander launches the biggest number of the projects, involving 119 own developments, out of which a half is being commercialized and the other half under construction, (…). The perfomance will result in 6.000 dwellings. The bank does not break the developments down in accordance to the geographical zones.
BBVA is currently elaborating 11 housing developments, situated in the center of Madrid, in Alcorcón, Pontevedra, Bilbao, Valencia, Cordova and Hospitalet de Llobregat. (…). The bank´s real estate entity, Anida, will construct 847 houses, 1.237 parking spaces and a dozen of trade premises, in total 1.289 new real estate properties (…).
Banco Sabadell also has the residential developments on its own land and few days ago it announced investment of 150 million Euros in construction of 1.182 dwellings. The plots are located in the areas where the bank detected growth in demand or rise in the price per square meter (…), for instance in Cerdanyola del Vallès, Calvià (Majorca) and Murcia. Out of the 44 housing developments, 13 are under construction and 18 obtained permission for so.
(…) The banks also start to grant new developer loan to the companies that have survived the recession within the sector and are viable again. (…) María Dolores Dancausa, the CEO of Bankinter, said at the Tuesday´s presentation on the results of the 2013 exercise that her bank also had granted the credits. However, only to those who came up with “very interesting projects”.
Santander, BBVA and Sabadell will build the houses, although they still dispose of a considerable stock of the unmarketable property (…).
Sector Reduces its Real Estate Exhibition
The development of owned land and the 8.000 dwellings by banks is an exceptional action. In the nowadays´context of the banks getting rid of their real estate property (…) 14 Spanish banking groups have had awarded real property (mostly empty homes, buildings under construction and land) valued at 39.226 million Euros (data from June 30th).
The entities healed the assets by joint provisions of 37.146 millons. The amount does not include the risk transferred to Sareb will cover 48% of the gross value. The portfolio will have been be cut by the year (…). At the moment, Sabadell has already announced that its real estate entity Solvia sold 18.501 properties last year, 34% more than it did the previous year.