Sareb’s ‘Corona’ BAF Earns €1.3 Mn by June

10/09/2014 – El Pais

Ahorro y Titulización, the management company appointed for the Banking Asset Fund Corona on December 19th 2013, has delivered the first half of the year results sheet to the National Stock Market Commission. The vehicle created by Sareb, Spains bad bank, brought €1.3 million gains.

The amount was obtained after reducing the total earnings (€3.23 million) from rentals of four office buildings included in the Corona portfolio by €1.93 million. Out of these expenses, €900.000 were financial and similar, €425.000 covered asset damage and almost €600.000 were general expenditures, including commission charged by Sareb of €128.000.

For the day 30th June 2014, the BAFs portfolio consisted of four office buildings acquired from Sareb (Delta II and III, Montecarmelo and Tucuman) for €80 million. The two Delta properties show a 84% occupancy rate, while Montecarmelo and Tucuman (pictured) are fully rented.

The bad bank is the only shareholder of the fund and it sold the units to itself through a debt issue of €48 million. Moreover, Sareb lent to itself €32 million at 5% interest rate and gave a credit line of €4 million, including €597.000 intended for expenditures in the first quarter of the year.

The debt will be auto-paid-off by the bank.

When it comes to the financial assets encompassed in the Corona fund, they represented a €2.34 million in liquid and €275.000 in unpaid rentals. Out of the latter, €68.000 have been classified as sub-performing as the tenants failed to satisfy their payments for more than 3 months and therefore a provision of €11.000 has been made to cover the loss.


Original article: El País (by Juan Carlos Martinez)

Translation: AURA REE