The awarded portfolio is made of nearly a thousand properties, located mainly in the Valencian Community, Andalusia, Murcia, the Canary Islands and Madrid. Several firms such as KPMG, which has acted as a financial advisor, Baker & McKenzie, Ashurts and Monthisa have participated in the operation.
Sareb, known as the “bad bank”, finished yesterday the awarding process of its first package of real estate assets, known as “portfolio Bull” to the venture capital fund HIG Capital, which will close the operation through its subsidiary Bayside Capital.
As announced by Sareb , the portfolio of assets awarded to HIG is valued at 100 million Euros and is made of a total of 939 properties located in Andalusia (275), the Canary Islands (129), Cantabria (5), Catalonia (38), the Valencian Community (343), the Balearic Islands (19), Madrid (86) and Murcia (44).The package also includes 750 annexes (garage spaces and storage rooms) and trade premises.
This is the first real estate operation carried out by the so called “bad bank” in the wholesale market where several consultants, such as KPMG, as a financial advisor, Baker & McKenzie, Ashurts and Monthisa have participated. The design of the operation, structured through a Banking Assets Fund (BAF), (the first one created in Spain, according to Sareb) and which will operate as a joint venture, will allow the “bad bank” to participate in the future benefits. The bad bank will have a participation of 49% in this investing vehicle, onto which all real estate assets from the “portfolio Bull” will be transferred, while HIG Capital will own the remaining 51%.
In accordance with the terms of the transfer, the properties being transferred to the BAF will be managed by an independent operator chosen by the investor, the Spanish company Monthisa, with a long experience in the real estate management.
Belén Romana, president of Sareb, has pointed out the interest arisen among foreign institutional investors. In her opinion, “the quality of the offers shows the confidence all investors have in Sareb and in the recovery of the Spanish real estate market”.
Those in charge of the bad bank assure that when deciding for the offer of HIG Capital they have taken into account “the structure of distribution of the earnings and the presented business plan, which provided a higher potential return on the investment made”.
HIG Capital, has a portfolio of more than 10.000 million Euros and in Spain, where it has a significant presence, it is led by Jaime Bergel.