BBVA Looks for Buyer to Acquire Up to €1.3 Billion in Toxic Real Estate Assets

14 October 2019 BBVA is looking to sell off up to a third of its approximately €1.3-billion portfolio of non-performing real estate assets. The Spanish bank acquired many of the assets during Spain’s financial and real estate crisis when BBVA bought up several of the country’s failing savings banks.

The bank is looking to rid itself of the €3.6 billion in foreclosed assets and €1.345 billion in shares of real estate companies, in addition to unpaid loans from SMEs and individuals valued at about €5 billion.

Some of the groups potentially interested in acquiring the assets include Cerberus, which already bought BBVA’s real estate business in 2018, Apollo, Blackstone, Bain Capital and Lone Star.

The sale, which consists of residential, commercial and land assets is still in its initial phase. However, the bank is looking to complete any sale before the end of the year.

Original Story: Business Insider – Adrián Francisco Varela

Adaptation/Translation: Richard D. K. Turner

BBVA Breaks off Talks for Sale of Operation Chamartín with Merlin Properties

1 October 2019 – BBVA has informed Spain’s National Securities Market Commission (CNMV) that it has broken off talks regarding the potential sale of its development rights to the Operation Chamartín project. The bank did not cite a reason for the breakdown in the talks. Merlin Properties had recently  made a preliminary offer of almost 700 bank branches it leases to BBVA in exchange for the rights.

Recently, other candidates, such as the Canadian investment group Brookfield and the sovereign wealth fund Qatar Investment Authority, have also demonstrated an interest in the project. Construction in the Operation Chamartín area is expected to last for 25 years and require total investments of over €7 billion.

Original Story: La Vanguardia – Conchi Lafraya

Photo: Dani Duch

Adaptation/Translation: Richard D. K. Turner

Merlin Offers 699 Bank Branches to BBVA in Return for Rights to Operación Chamartín

30 September 2019 – Merlin Properties has offered 699 offices that it currently leases to BBVA in return for the Spanish bank’s rights to the Operación Chamartín, a 3.3 million-square-meter new urban development in northern Madrid. Merlin is in the final stages of negotiations with BBVA to take over what will be the largest urban development in Spain and one of the largest in Europe. For the bank, the deal offers the possibility of acquiring its offices with no capital outlay and avoiding future rental payments.

Operación Chamartín encompasses land that is 5.6 kilometres in length and up to one kilometre in width. The development will consist of residences, offices, retail stores, parks, gardens and other amenities and facilities such as schools.

In November 2018, BBVA had already re-acquired 166 branches from Merlin for €252 million. Based on that sale, the remaining 699 bank branches could have an estimated total value of approximately €1.1 billion.

Original Story: El País – Íñigo de Barrón

Adaptation/Translation: Richard D. K. Turner

BBVA in Negotiations to Transfer Development Rights for Operación Chamartín to Merlin Properties

30 September 2019 – BBVA is finalising negotiations to transfer its rights to the Castellana Norte District (DCN) to Merlin Properties. The sale would be potentially the largest real estate operation in Spain and Europe, according to knowledgeable sources.

The two firms have been negotiating the details of the agreement for weeks and BBVA is likely to retain a small stake, about 2%, in the new company. At the moment, BBVA controls 75% of DCN’s capital, while the construction company San José controls the remaining 25%. The project, known as Operation Chamartín, will include residential areas on 25% of the land, with offices, commercial premises and green areas on the rest.

BBVA will supervise the development until its completion, which, due to the size and complexity of the project, is expected to take 25 years.

Original Story: El País – Íñigo de Barrón

Adaptation/Translation: Richard D. K. Turner

Cerberus and BBVA Hire Konstantin Sajonia-Coburgo to Head Up Divarian

16 August 2019

The US fund Cerberus and BBVA have hired Konstantin Saxony-Coburg to head up Divarian, the company that they created after Cerberus acquired the bank’s real estate assets. Saxony-Coburg left his position as co-head of investment banking at Barclays Spain last year, where he had worked since 2010. Divarian, owned 80% by Cerberus and 20% by BBVA, has €13 billion in assets in its portfolio.

The North American fund and BBVA opted to merge Divarian with the US firm’s servicer, Haya Real Estate, this year. Haya is responsible for managing and selling all Cerberus’s real estate holdings in Spain, except for its land bank, which is managed by Inmoglaciar.

Original Story: El Confidencial – Jorge Zuloaga

Photo: Cordon Press

Adaptation/Translation: Richard D. K. Turner

BBVA to Sell Its 75% Participation in the Madrid Nuevo Norte Project

30 July 2019 – Richard D. K. Turner

The Madrid City Council has unanimously approved the Madrid Nuevo Norte project, also known as Operation Chamartín, after a twenty-five-year wait. The project must now gain final approval from the Community of Madrid government and weather lawsuits from community and environmental groups.

District Castellana Norte (DCN), which is 75% owned by BBVA together with Grupo San José (25%), is the developer in charge of the project. Though BBVA has publicly affirmed its commitment to see the project through, increased oversight by the ECB and a change in the bank’s leadership have fuelled speculation that BBVA will sell its participation of a single major investor.

Despite some changes to the urban development plan, Operation Chamartín will lead to the construction of 10,500 homes (20% with some kind of protection), a new financial district and the refurbishment of the Chamartín train station. In total, investors will plough roughly €6 billion into the project over about two decades. Construction is expected to commence in 2021.

Original Story: El Confidencial – Ruth Ugalde

Insur Refinances €100 Million in Outstanding Debts

20 July 2019 – Richard D. K. Turner

Inmobiliaria del Sur (Insur) took advantage of favorable market conditions to refinance its outstanding debt this week. The firm refinanced 100 million euros of debt, equal to 60% of its total net liabilities, at significantly better conditions, freeing up over 35 million euros over the next five years. Insur owns rental properties, including offices, commercial premises and car parks.

Insur Patrimonial arranged the refinancing in an operation involving a total of 11 banks, led by Santander. Those banks include Caixabank, BBVA, Unicaja, Sabadell, Bankinter and Novo Banco. In addition to the €100 million, the firm also borrowed another €10 million to acquire an office building in Seville for redevelopment into a hotel to be leased to Hotusa.

Original Story: El Confidencial – Carlos Pizá de Silva

Photo: F. Ruso

Solicius Acquires Office Building Housing BBVA in Vitoria

17 July 2019 – Richard D. K. Turner

Solicius, the socimi owned by the Mazabi Group, has acquired a property in Vitoria. The asset is a building located at Calle Eduardo Dato, 12, in one of the most consolidated areas of the city. The almost 2,500-m2 building is valued at more than 10 million euros and is currently fully leased to BBVA.

The socimi is currently building up its portfolio of properties before an intended stock market listing sometime next year. Solicius’ goal is to reach €1 billion in assets. At the moment, its diversified portfolio consists of more than twenty properties.

Original Story: Idealista

 

Metrovacesa to Invest Up to €1 Billion in Four Major Developments

17 July 2019 – Richard D. K. Turner

Metrovacesa, a real estate developer owned by  Banco Santander and BBVA, expects to build a total of 6,000 homes, along with office buildings, hotels and commercial premises around Madrid, Barcelona, ​​Sevilla and Valencia over the coming six years.  The firm is forecasting a total investment of one billion euros.

The project that is furthest ahead is 67-hectare complex in Palmas Altas, Seville. Metrovacesa is investing 400 million euros to develop 2,189 homes.

Original Story: EjePrime

BBVA Finalises Transfer of Most of its Anfora Portfolio

28 June 2019

BBVA has closed the transfer of most of the credits rights that comprise the Anfora portfolio. The transaction was announced in December 2018.

At the end of 2018, BBVA reached an agreement with Canada Pension Plan Investment Board (CPPIB), to transfer a credit portfolio in Spain, which was composed by mortgages credits (mainly non-performing and in default).

Today the great majority of the loans in this portfolio (with a gross value of about €1.2 billion) were transferred to Anfora Investing U.K. Limited Partnership, which is owned by the Canada Pension Plan Investment Board. The transfer of the small amount of credits that remain in the Anfora portfolio (with a gross value of approximately €130 million) is expected for Q3-19.

BBVA expects the transaction to have a positive impact on the Group’s net attributable profit of approximately €130 million, which will be reported in Q2-19 financial results. In addition, it is also expected to have a slightly positive impact on the fully-loaded CET1 ratio.

Link: BBVA