Sareb Sheds Portfolios Worth Over €1 Bn In December

12/01/2015 – Cinco Dias

Sareb, Spain’s bad bank, took a good advantage of every day of the rest of 2014 and sealed some significant deals amounting to more than €1 billion.

According to a statement released by Sareb Friday, on December 31st it signed a transfer agreement on 39 non-performing, secured loans, known as portfolio ‘Aneto‘. Their par value was of €237 million and they were acquired by international investment tycoon Blackstone. KPMG and Ashurst advised on the transaction.

The portfolio is secured with 29 residential housing developments and plots situated mainly in the Valencian Community, Madrid and Galicia regions.

In parallel, the company chaired by Belen Romana (pictured) agreed to sell an office building housing Gallina Blanca in Plaza Europa Square, Barcelona, to Colonial.

The property of 4.869 square meters of office space and 68 parking spaces was acquired for a total of €10.4 million, in assistance of Aguirre Newman and Anticipa.

“The sales prove the bad bank is a dynamically operating business and its assets are popular in the market”, Sareb’s CEO Jaime Echegoyen pointed out.

“The deals reassure that the entity successfully fulfills the role given to it”, he added.

Sareb has said good-bye to the year 2014 by sealing several loan and property portfolios valued at over €1 billion. The deals include Project Agatha (a loan and real estate portfolio worth €259 million), Meridian (a €133 million loan package), Olivia (loans valued at €140 million) and Kaplan (loans to small and medium-sized developers of a par value of €234 million).

In the last weeks of 2014, Sareb has sold four office buildings included in the Banking Asset Fund ‘Corona’ for €81 million, it declared in a statement.

 

Original story: Cinco Días (by J. P. C.)

Translation: AURA REE

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

Banking Asset Funds of Sareb Turn Out to Be Counter-Productive

5/09/2014 – Inmodiario

It is difficult to find out how are faring Sarebs Banking Asset Funds (or BAFs). They were established by the bad bank in order to sell some of its REO assets but in fact this is not what they do. Sarebs website offers absolutely no information about the Funds and the first trace one may come across is the site of the National Stock Market Commission (the CNMV) and its updates (if) available on the topic.

Once the information localized, one learns that in the first half of 2014, BAFs Bull and Teide brought a joint loss of €6.4 million as the €34.4 million amount obtained from the sale of 437 properties seem to be insufficient to defray expenses of these vehicles. The biggest volume of the equity goes to Sareb itself in shape of repayments.

The Bull Fund sold 235 properties for €15.75 million in total and still it closed the half year results with a €2.84 million loss. Created as a joint venture with HIG Capital on 26th July 2013, the fund encompassed 1.687 housing units (939 homes, 550 parking spaces, 21 retails and 177 storage rooms). HIG holds a 51% stake in the BAF, while Sareb – 49%. During the first year of its existence, the Bull portfolio shrank to 1.322 properties.

This Banking Asset Fund was legally established on December 13th under management of Intermoney Titulizacion. Rapid refinancing by its shareholders helped to reduce its €93 million debt before it received another credit line of €10 million.

In case of the Teide BAF, Fortress, which holds it together with Sareb, does not take any risk in spite of having an 85% share in it. All 2.441 properties from this portfolio could start being marketed after the bad bank absorbed an €88 million share issue and lent another €58 million. Then, a credit line of €15 million made it complete.

During the first ten days of its lifespan, the Teide Fund lost €2 million and its total H1 2014 loss showed €3.53 million in the red. During this time, 202 properties left the portfolio (+€18.7 million from the sales) and around €41.000 has been earned from rentals of 37 units.

In July, Sareb conveyed its share in Teide to Deutsche Bank.

 

Original article: Inmodiario (by Juan C. Martinez)

Translation: AURA REE