30 December 2016 – Expansión
Sareb has sold two debt portfolios to Deutsche Bank for €160 million. One, worth €80 million, called Sevilla, contains debt secured by residential assets (homes) located all over Spain. The other, called Marina, is a debt portfolio secured by industrial logistics assets located in Madrid and Toledo.
The two operations have been advised by Dentox and Copernicus. These sales come after Project Eloise, which was closed by Sareb earlier in the week for €600 million, for which it received legal advice from Ramón y Cajal. That operation was the largest in Sareb’s history. It was secured by homes, located above all in Cataluña, Madrid, Andalucía, Galicia and Valencia. The financial advisor in Sareb’s three sales has been CBRE.
The transactions have been made more challenging since the Bank of Spain introduced its accounting regulations, which oblige the bad bank to update its assets to market prices each year. In March, for example, the entity sold a package of loans whose collateral included industrial logistics assets, hotels and offices. In September, it divested another portfolio secured by residential buildings in Madrid.
The entry into force of the Bank of Spain’s new accounting circular forced Sareb to undertake a clean up of €2,044 million during the first half of the year, which was added to provisions amounting to €968 million from the previous two years. The four real estate companies that sell Sareb’s assets are Altamira Asset Management, Haya Real Estate, Servihabitat and Solvia.
Between January and September, the bad bank sold 8,930 properties, up by 12% compared to the same period last year. Of those, 5,109 were its own properties. Another 3,821 came from the balance sheets of property developers.
Original story: Expansión
Translation: Carmel Drake