Sareb to Sell its Rental Home Socimi Témpore to TPG & Ares

2 December 2018 – Tercera Información

Sareb, the financial institution that has a large volume of public capital is going to sell one of its Listed Real Estate Investment Companies (Socimis), Témpore, which manages a stock of thousands of rental homes, to the US vulture funds TPG and Ares. The operation comes at a time when the experts are warning about the emergence of a new speculative bubble in the real estate sector.

The Company for the Management of Assets proceeding from the Restructuring of the Banking System (Sareb), known as the “bad bank”, an entity financed using public capital, which is responsible for managing the toxic assets of the financial entities created during the bubble, has announced the imminent sale of the Socimi Témpore. That corporation was created just a year ago and owns thousands of rental homes.

The Socimis, Listed Real Estate Investment Companies, are a resource created to manage enormous batches of housing in the hands of private investors. Témpore is one of the large companies created by Sareb to manage the rental properties it inherited during the so-called bank restructuring process. Created just a year ago, Sareb has always announced its intention to resell the properties in the private market.

The buyers are the private equity firms TPG and Area, according to reports from financial newspapers yesterday. The agreement at a time when Témpore is on the verge of incorporating a large batch of homes, which means that it will have 3,357 flats in total, making it the third largest company with most properties in the market.

Similarly, according to the information published about the agreement, Sareb is going to continue to transfer homes to the Socimi until November 2020.

The sales process is particularly significant at a time when the real estate market seems to occupy the centre of attention of the large investment volumes in the country’s economy. Far from the fear of a repeat of the collapse of the market similar to that experienced at the start of the economic crisis and becoming immersed again in a dynamic of using land and properties as main investment assets, the financial institutions of private equity firms, such as the US player Blackstone, are acquiring large volumes of homes through the purchase of these Socimis (…).

Original story: Tercera Información (by Christian Zampini)

Translation: Carmel Drake

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