9/05/2014 – Cinco Dias
With a very successful first quarter performance (40 houses sold a day, compared to an average of 25 units in all of 2013), Spain´s bad bank starts-off the second phase of its business plan: finishing housing developments found in its balance and transferred to it by bailed-out banks.
Sareb specified which developments will be brought to an end this year. In July, 126 of them embracing jointly 2.857 housing units will re-launch their construction works in 32 Spanish regions.
The probe selected by the bank bank represents mere 20% of all halted developments in its hands bought from Bankia, Novagalicia, Catalunya Banc, Banco de Valencia, BMN, Liberbank, Ceiss and Caja3. The first-pick criterium was the state of construction progress as an average rate of the advancement posts 80%. Moreover, among the chosen units, 60% of the total is finished in 95% and for this reason cuts significantly in investment costs.
However, finishing them will allow to preserve their potential value given that an accomplished unit is more resistant to weather factors and better secured.
In detail, Sareb intended €107 million for housing development in 2014. For technical coordination of the works, the bad bank named five project managment companies, but also construction, maintenance, manager and property broker firms to trade the once-finished stock.
The biggest number of developments is concentrated in Catalonia (41, including 653 dwellings). Barcelona only will gain 419 new houses inside 26 developments.
Catalonia is followed by Cantabria with 338 properties, A Coruña with 295 and Alicante with 281 units. On the other side, absolutely no construction works will be launched in the Basque Country, Murcia and Castille-La Mancha, with an exception for Ciudad Real where 91 homes will become ready to welcome inhabitants.
Once all the 126 housing developments foreseen for 2014 finished, building works of another 514 will be launched.
Aside from residential asset sales and completing the housing developments, Sareb focuses on finding new owners for its land. In fact, two thirds of the scope are loans. Although the market of plots still remains paralyzed, the bad bank is closing the “Cross Over” operation that includes a €350 million worth of land sold with up to 38.5% discounts.
To learn more about Spain´s bad bank, visit our SAREB section.
Original article: Cinco Días (by Juande Portillo)
Translation: AURA REE