“Vulture Funds” Manage Over €277 Bn of the Real Estate Industry

1/07/2014 – El Confidencial

New times, new players. Sacresa, Martinsa and Hibitat have been wiped out by servicers, real estate management companies that currently administer more than €277.2 billion in assets (land, property and loans). The amount accounts for 27% of the Spanish GDP.

Out of these €277.2 billion, nearly €163.5 corresponds to defaulting loans purchased by so-called “vulture funds” that in turn granted the management of the financial assets to the aforementioned servicers. The rest, €113.75 billion, is represented by properties in diverse order, from land to finished buildings.

With operators like ServihabitatCerberusAnida or Apollo (that bought 85% of Altamira), the real estate business does not own the assets anymore but it does charge commissions for their management. For drawing a scheme, resolution of Sareb´s REO assets seems crucial.

Servihabitat, currently run by TPG and La Caixa, owns a €19.4 billion worth of purely real estate assets (17%). The servicer manages a great part of La Caixa´s assets but like the rest of the firms it seeks growth and more customers.

The servicing platform is followed by Haya Real Estate controlled by Cerberus, with €16 billion in property, that is about 14% of the total in hands of the servicers. The third ranks Anida, the real estate arm of BBVA, accumulating €11.2 billion and accounting for around 10% of the entire portfolio.

If assets of Sareb excluded, the ranking changes a bit. Servihabitat maintains the first place with €18.3 billion, but Anida climbs on the second with €11.2 billion, whereas the third postion gets taken by Aliseda with €10.6 billion. Aliseda itself is possessed in 51% by Värde Partners and Kennedy Wilson, while the remaining 49% is held by Banco Popular.

The majority of these servicers have been sold by the top Spanish banks. However, there are two large groups that have not changed hands and also qualify for the list: BBVA´s Anida and Banco Sabadell´s Solvia. In the real estate only, Solvia manages €10.6 billion. Both banks received many offers for their managers but they chose to refrain.

In spite of the fact that these companies are known for the property management, huge part of their work concerns mortgage-backed, non-performing loans. In this framework, Cerberus and its Haya Real Estateamasses nearly €46 billion, about 28% of the total of loans managed by the servicing firms. Servihabitat ranks the second with €19.3 billion, equal to 12%, whilst BBVA takes the third place again with almist €14 billion in the administered financial assets.

When the assets of Sareb excluded, the ranking changes once more: Servihabitat leads with €15.8 billion, followed by Anida (BBVA) with nearly €14 billion and Solvia as the number three with €13 billion.

It turns out that the entities that have not shed their servicers, i.e. Banco Sabadell and BBVA, stand on the podium if the assets of the bad bank are not taken into account.

 

Original article: El Confidencial (by Marcos Lamelas & Carlos Hernanz)

Translation: AURA REE

58