Tag: co-investment model

28 September 2016 – Diario Vasco

Sareb has chosen 19 plots of land from its portfolio, which have the capacity to house around 1,100 homes, for which it will team up with a dozen companies from the real estate sector to develop projects under both co-investment schemes as well as through direct sales.

Sareb explained in a statement published on Tuesday that this project forms part of the strategy that it is pursuing to revalue its assets and better execute it divestment mandate.

In this case, Sareb’s initiative is being driven in conjunction with several selected companies: Grupo Brial (with 4 developments), Construcciones Amenabar (3), Grupo Bertolín (3), Inmobiliaria del Sur (1), Aldesa (1), Aelca (3), Desarrollos y Construcciones Fomex (1), Atica (1), Monthisa (1) and Sequoia Desarrollos Inmobiliarios (1).

According to Sareb, the winning property developers were chosen after a competitive process was held, in which 76 candidates participated. It added that it has been supported in the selection process by Irea as well as by three of its management companies (Altamira, Servihabitat and Solvia).

The 19 plots of land that Sareb has chosen from its portfolio have a combined buildable surface area that the bad bank estimates has the capacity to house around 1,100 homes.

The plots of land in this operation are located in Andalucía (4), Madrid (4), Cataluña (3), Baleares (2), Aragón (2), Comunidad Valenciana (2), Asturias (1) and Castilla y León (1).

Sareb explained in its statement that most of the offers from the selected companies reflect a co-investment model, whereby the bad bank will retain ownership of the asset, and the property developers will contribute some of the investment funds and take responsibility for the construction the properties.

In five cases, Sareb has opted for a “financial swap” to maximise the economic return. It explained that this alternative involves the property developer partners buying the assets outright.

The price that Sareb is receiving for the land will be complemented in the future by a percentage of revenues from the sale of the homes.

The construction works are expected to be completed from 2018 onwards, depending on their characteristics.

Sareb is evaluating offers for other plots of land, which, if they go ahead, would further expand the perimeter of the co-investment initiative.

“The plots of land and projects that have been put on the market have been selected in accordance with criteria of efficiency, commercial suitability and the technical quality of the proposals”, said the Director of Direct Management at Sareb, Juan Ramón Dios.

In 2015, Sareb announced the development of 13 plots of land, some of which are now being sold.

Morever, since its creation, Sareb has completed 46 developments that it received in an unfinished state, and as a result, has already put around 1,000 new homes on the market.

Original story: Diario Vasco

Translation: Carmel Drake