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Santander Premises Owner´s Crisis Attracts New Investors

The British fund Propinvest struggles to avoid liquidation. The company chaired by Glenn Maud owns an important portfolio of real estate assets in Europe, to stress the premises of Banco Santander, acquired in 2008 for 1.900 million Euros in partnership with Derek Quinlan.

In November 2011, Propinvest that also possesses the Citi Tower, a London complex of Canary Worf, has been advocated for payment suspension, affected by the financial recession and the real estate property that it swept across the international market.

Its insolvency had negative influence on the banks that had supported it financially 6 years earlier when Propinvest was to buy the Santander´s corporative premises. The agreement with the Spanish bank was reached in January, however the company still needed a few months to obtain financial formula for making its most important investment viable. Finally, the British fund bought the building almost entirely relying on the credit.

Two years later, (…) the holders of the debt decided to get rid of at least a part of the 1.900 millions in liabilities. Therefore, at the end  of the year, several distress funds paid 400 millin Euros for the debt, according to El Confidencial.

The target of these funds is set at taking positions before the looming liquidation of Propinvest and hold the Financial City of Santander as a payment.

The sale is not the first credit package released on the market by Propinvest. Two years ago, Robert Tchenguiz and a fund from Abu Dhabi bought from RBS about 200 million Euro debt of the debt guaranteed by the premises of Santander. Tchenguiz, (…), aimed at taking control over the building executing the loan. Propinvest rejected the operation and reported the case to the court. (…).

The Transaction

The sale of the Financial City of Santander has been the first great sale & leaseback operation conducted in Spain. The entity was selling its premises in Boadilla del Monte, 4 years after the credit grant.

In turn, Santander pledged to remain the tenant of the unit for next 40 years, paying annual rent equal to 80 millon Euros.

Source: Expansión