Santander closed yesterday the disinvestment of its real estate management company Altamira. The bank announced the sale to the U.S. fund Apollo with which it reached a pre-agreement in November, of selling 85% of Altamira for 664 million Euros. Thanks to the transaction, Santander, holding the remaining 15%, will note down capital gains equal to 550 million Euros (385 millions when taxes charged).
(…) In the last quarter of 2013, the bank registered in annual accounts 700 million Euros of net capital gains proceding from the partial sale of its fund management company to the capital risk funds Warburg Pincus and General Atlantic. The bank has not specified yet what the extraordinary income of 1.085 millions gained in several transactions will be spent on.
Altamira Asset Management, controlled by Apollo, will manage the recovery of the defaulting credits in Spain and will commercialize, via sales or rent, the awarded property portfolio. Santander will keep the assets in its balance.
By June 2013, (…), Santander accumulated 8.400 million Euros in property. The doubtful mortgage portfolios in Spain and the non-performed developer credit sum up to 11.200 millions. (…)
Burden of Transactions
Together with the transaction accomplishment of Santander´s real estate company, the scope of company sales witnessed by the sector in last few months extends. Last week, Popular signed the sale of 51% of Aliseda to Värde Partners and Kennedy Wilson with capital gains of 710 millions. Both funds acquired this summer CatalunyaCaixa Inmobiliaria. Also, in August Cerberus bought Bankia Habitat. CaixaBank sold to TPG 51% of ServiHabitat.
By now, BBVA has been the most reluctant towards granting control over its real estate company. Sabadell left the possibility open.