La Caixa is settling the accounts of its real estate subsidiary. The savings bank has decided to reduce in 2072 million Euros the capital of Servihabitat XXI, the company owning most of the real estate assets awarded to the financial group. The aim with this capital reduction is to restore the patrimonial equilibrium of the company, that is, to wipe off the losses accumulated by the company as a consequence of the fall of prices within the sector. The discounts applied by Servihabitat when commercializing its properties cause the sales to close with a lower price than their value in books, with the corresponding loss.
Since the real estate bubble burst in 2007, La Caixa has injected 3450 million Euros in Servihabitat through seven capital extensions; the last ones were in 2011, when the savings bank contributed with 1920 million Euros. A part of these resources have already vanished, which has obliged Servihabitat to reduce its capital for the first time. The operation will be carried out through the reduction of the nominal value of the shares in 60 Euros, so that each one will go from 100 to 40 Euros. The capital will be established in 1381,5 million Euros.
This adjustment in the accounts takes place after Servihabitat split in order to create the subsidiary Servihabitat Gestión Inmobiliaria. The parent company will therefore operate like a patrimonial company, while the subsidiary is in charge of the commercialization and the management of the assets. La Caixa has hired Morgan Stanley to search for a partner for Servihabitat Gestión.
The capital of Building Center, the bad bank of CaixaBank was also expanded in 1250 million Euros in March, where 2000 million Euros had already been injected. In 2012 the financial group sold 11830 own properties – not from developers- for 1582 million Euros, 99% more.