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Santander Will Receive 550 Million Euros for Sale of 85% of Altamira to Apollo

Santander will close in the forthcoming days the sale of one of the biggest real estate platforms in Spain. The entity chaired by Emilio Botín will earn around 550 million Euros for transferring 85% of its branch associated with the real estate, Altamira, to the U.S. fund  Apollo Global Management, according to the sources close to the operation.

When Santander and Apollo put their signatures of the document, the operation will become the one of the greatest in terms of money involved, just after the Popular Bank´s handing Aliseda to two U.S. funds for 415 million Euros. Still the entity chaired by Ángel Ron holds huge percentage of its real estate subsidary, 49% on basis of the agreement between him and Värde Partners and Kennedy Wilson.

The pact between Santander and Apollo involves transfer of Altamira´s staff – about 500 people – and a 10-year management contract. According to it, the U.S. fund will be obliged to manage and sell the property awarded to Santander and its non-performing loans. (…)

Apollo will not disburse all in cash but it will pay with help of the consortium of banks´financing. Santander itself belongs to the consortium.

The director of the U.S. fund Leon Black had already announced in an interview for Expansión that he would invest 1.000 million Euros in Spain between 2013 and 2015. Apart from Altamira it acquired Evo from NCG for 60 millions and Finanmadrid from Bankia for 1.6 million Euros. (…)

Apollo took part in the auction of Altamira, known as the Bison Project, together with 3 other main funds investing in Spain: Cerberus, Centerbridge and Starwood.

The transaction gives Santander a chance to earn great captial gains in a single year which previously brought it some losses. (…)

Santander reduced the weight of the real estate company´s balance last year, changing it from 15.450 millons to 11.420 millions between September 2012 and September 2013, according to the entity´s data.

Source: Expansión