5 October 2018
Sareb sold 12,936 properties in the first eight months of the year, 4.9% more than in the same period in 2017, according to the company’s preliminary data. Of these, 8,017 units corresponded to Sareb’s properties, while the remaining 4,919 were assets that were included as loan guarantees and that developers sold through Sales Revitalization Plans (PDV) to obtain liquidity and reduce or cancel their debt with Sareb.
Of the total amount of properties sold, 87% were residential assets (homes and annexes); 8% were plots of land, and the remaining 3% were commercial properties. Regarding the sales of residential assets, the increase in the sale of homes developed by Sareb stands out – both through the developments on lands owned by Sareb itself, as well as through the completion of unfinished developments-, rebounding by 124% to 1,245 units. The sale of commercial properties also grew by 30% year-on-year in the first eight months of the year, while the sale of land increased by 3%.
Sareb’s operations have allowed it to plough ahead with its mandate to liquidate its portfolio of assets, which, by the end of June, had fallen from its initial high by 28.9%, to 36.128 billion euros, according to the data for the first semester of 2018. Of the total value of the portfolio, 66% corresponds to loans to developers and 34% to other types of properties. The company had also reduced its senior debt by 25.4% to €37.875 billion euros by the end of June.
Between January and June, the period analysed in the report, Sareb sold 10,618 properties, 9% more than in the first half of 2017. Of these, 5,926 were assets of were owned by Sareb itself, and 4,692 were properties that were held as a guarantee.
The largest volume of the residential assets sold that were owned by Sareb was concentrated in Catalonia (19.4%), Comunidad Valenciana (17.7%), Andalucía (14.8%) and Comunidad de Madrid (12.6%), according to the Activity Report for the first semester of 2018.
The company generated revenues of 1.5766 billion euros in the first half of the year, of which 62.4% came from the management and sale of loans, and 37.6% from the activity related to real estate.
In the first semester of 2018, Sareb moved ahead with its configuration of a new territorial structure that will allow it to deepen its knowledge of its portfolio and adapt its supply to the demand found in local markets. At the end of June, the delegations in the Valencian Community and Region of Murcia; and Catalonia, Aragon and the Balearic Islands are fully operational, together with the Madrid Center-Canary Islands delegation, launched in 2016. The delegations of Andalusia and the north-east of Spain will soon start operations aimed at boosting sales in those regions and accelerating the strategy of divestment.
In April, Témpore Properties debuted on the Alternative Stock Market (MAB). The socimi funded by Sareb has a portfolio of some 1,400 homes.
Between January and June, Sareb also continued to promote its real estate development activities, aiming to increase the value of its assets before their eventual sale. At the end of June, the company had invested 99.4 million euros in the completion of unfinished works and the development of its land, which together represented the construction of 6,446 properties.
Original Story: Inmodiário
Translation: Richard Turner