They are the current kings of the Spanish real estate sector. Funds such as Blackstone, Apollo, Fortress or Goldman Sachs, among others, have carried out the biggest acquisition of assets in the Spanish market. With a slow start in our market, due to the high prices first, and after that because of the lack of trust in the national economy, the situation has changed radically since the summer.
The closure of the first operation by Sareb, called Toro, had a call effect and in hardly four months, there have been acquisitions for more than one thousand million Euros. Toro was followed by Bermudas, with the sale of credits for hundreds of millions from the listed real state companies such as Realia and Metrovacesa.
Sareb was not the only one to attract attention from funds and as an example, two packages of subsidized properties from the Council and Region of Madrid were acquired by Blackstone and Goldman Sachs. Other funds, such as Baupost, are finalizing the acquisition of a package of eight malls for 180 million Euros.
The sale of these portfolios with a high volume and important discounts has attracted funds from all over the world to Spain. In some cases, the negotiations are carried out from the headquarters of these firms abroad. In these cases, the firms collaborate with law firms and real estate consulting companies with a team in Madrid, who are in charge of studying and closing the acquisitions. Once the
assets have been acquired, the funds search for teams located in Spain that may manage them and help them to recover their yield.
Here is when companies such as Azora enter the game. This company has been managing subsidized homes in Spain for many years and has collaborated with Goldman in the management of 3000 homes they have acquired in Madrid. Other firms, such as Magic Real Estate, have less experience as a company, but rely on managers with a long experience in the sector. Others, like Grupo Lar recycle themselves from great developers to managers of malls for third parties.
This phenomenon has also caused a great interest in the platforms of real estate management belonging to the financial institutions. In the last few weeks, the acquisition of some management companies from banks such as Santander or Popular has been closed.
Before that there were agreements with CaixaBank, Bankia, Catalunya Banc and Banesto. Investors such as Kennedy Wilson, Värde Partners, Apollo TPG, Cerberus and Centerbridge have invested nearly 2000 million Euros in these platforms.
With these acquisitions, the funds get employees, the agreements for the management of properties and the credits to developer from banks. But these operations are also seen like the anteroom of great acquisitions of assets from these institutions and as the base to manage and acquire properties from Sareb. (…)