Sareb to Ask For Cash in Exchange of the Asset Management

28/07/2014 – Expansion

Sareb, Spain´s bad bank, is going to receive a considerable liquidity injection from funds bidding for management of its assets. The company chaired by Belen Romana wants to take an advantage from the great interest shown in administration and sales of the €50 billion worth of debt and real estate assets and add to the contracts´value.

To accomplish that, Sareb informed the eight international investors and Spanish banks that reached the final phase of the “Ibero Project” about an obligation to make an advance payment and specify how much they expect to earn in commissions during the next 5-7 years.

With this strategy, Sareb sends a clear message it wants all bids homogenous and it ponders a future loyalty schemes similar to the ones offered by banks.

In fact, the operation is very similar to the transactions nailed down by Santander, Popular, Bankia and CaixaBank while selling their property branches. The entities raised between €40 and €800 million in exchange for future commissions.

In 2013, Sareb paid around €200 million for outsourcing its asset management, while funds estimate the bad bank may obtain up to €1 billion for each 5-7 year contract.

Currently, the eight following bidders would fancy be awarded one of the four agreements: Altamira, belonging to Apollo (85%) and Santander (15%), Servihabitat (TPG with 51% and CaixaBank with 49%), Aktua (Centerbridge), Aliseda (Värde and Kennedy 51% and Popular 49%), Haya Real Estate (Cerberus), Anticipa (Blackstone), Solvia (Sabadell) and Abanca.

Deadline for the binding offers has been set at the beginning of this week. The process is expected to conclude in September.

Sources from the sector indicate that the Bankia lot of credits and the Banco de Valencia assets, jointly valued at €20 billion, have been the most popular among the players so far.

Other portfolios at stake contain assets originating from BMN, Catalunya Banc and Caja 3 (totalling to €14.7 billion), from Liberbank and Abanca (€8 billion) and the last contract including assets from Ceiss, Banco Gallego and Bankia (€7.8 billion).

To learn more about the Spain´s bad bank´s activity, visit our SAREB section.


Original article: Expansión (by Jorge Zuloaga)

Translation: AURA REE