Sareb to Anchor on Rental Market This Year

10/03/2014 – Finanzas

Sareb´s director, Belen Romana assures that in 2014 the bad bank will enter the rental market where prices hit the bottom and investors find their bearings with opportunities.

One of the national daily newspapers published an interview with Belen Romana, the chairwoman of Sareb, in which she points out the 30% slump in housing prices, in some regions is still bound to occur but in general terms accomplished.

Similarly, she remarks that Sareb is seeking ways to add to value to its portfolio this year. For example, by creating an industrial base of houses for rent “given the business opportunity”. Their number could be considerable.

Romana, holding 55% of Sareb´s stake, says that one of the goals set for 2014 is raising retail sales by 15% by selling around 10.000 units and gaining market share in Madrid, Barcelona, Alicante, Valencia and Malaga.

Also, the bad bank is planning to invest €100 million in finishing half-ended houses that would bring about 3.000 new dwellings for sale.

The chairwoman calls the recent changes in the administration board of Sareb as “profile adjustments” necessary to enter the second stage of the bad bank´s activity.

Although in 2013 Sareb registered losses, Belen Romana is satisfied with the performance, as a €2.000 million debt could be redeemed and €1.200 million in interests paid-off to entities. “Reducing debt means decreasing the financial burden and by so, expenses. This is the way leading to lessening the burden for the Government and the risk for taxpayer” – she explains.



Original article: Finanzas (EFE)

Translation: AURA REE