‘The Bad Bank’ Sells Real Estate Assets Worth €847 Million

24/12/2014 – Yahoo Finanzas

MADRID (Reuters) – The so-called ‘bad bank’ in Spain said on Tuesday that in the end of 2014 it had allocated several real estate properties in the wholesale market worth €847 million.

SAREB did not disclose how much of these amounts would be quantified as gross revenues for the company – constituted in 2012 in return for European aid of €41.3 billion granted to Spain-, because it is not dealing with selling prices, a spokeswoman acknowledged.

The growth of SAREB’s income statement is under scrutiny of international investors after the president of the institution itself, Belén Romana, said earlier this year that the company had to revise its initial business plan — which envisages an annual average return of 14 percent throughout SAREB’s 15 years in operation — after completion of the due diligence of nearly €50 billion in assets.

In June 2014, SAREB closed with revenues totalling at €1.7 billion.

Financial sources recently told Reuters that SAREB could return to incur losses for the second consecutive year in 2014, likely having to make bad-debt provision for a part of its assets held in its book balance to meet market prices, causing further damage in its capital base.

Among the transactions closed in the latter part of the year are four portfolios of real estate loans that were sold for a nominal amount of €701 million, which included the ‘Agatha portfolio’ as well as a subsection of 10 property developments valued at €65 million.

In addition to these four transactions, SAREB recently closed the sale of four office buildings in Madrid to funds managed by Blackstone at a cost of more than €81 million.

Original article: Yahoo Finanzas (by Reuters)

Translation: Aura REE

Sareb Puts Up For Sale Subsidized Homes & Loans

18/09/2014 – Expansion

Spanish bad bank announced a new sale, this time of subsidized real estate-backed loans and assets included in Project Agatha. International investors rub their hands.

The project consists of two subportfolios: one consisting of performing loans related to subsidized housing valued at €200 million and another one composed of 800 state-protected dwellings.

The operation is not the first of this sort carried out by Sareb. At the beginning of the year, in the framework of Project Dorian initiated by Madrids authorities, the bad bank sold 600 subsidized apartments to Blackstone for €43 million.

Later on, the U.S. fund acquired 1.800 dwellings of this type for the total amount of €128 million from the City Hall of Madrid. This deed has aroused a lot of controversy.

Other Portfolios

Apart from the Agatha, Sareb has run another large operation – Project Kaplan, including hundreds of small and medium loans amounting to €1 billion. Their collateral property is mostly located in Madrid, Catalonia and Andalusia. This sales process is at the brink of closing.

The bad bank sealed one deal more in August, namely it transferred the Pamela loan portfolio for €200 million.


Original article: Expansión (by Jorge Zuloaga)

Translation: AURA REE