Mapfre Sold 45 Properties Worth €34.5M In 2015

23 February 2016 – Expansión

Mapfre is taking advantage of the emerging recovery of the Spanish real estate sector to accelerate the disposal of non-strategic assets from its investment portfolio. And, as a result, increase its economic return from the sale of homes, premises and offices, amongst others.

Last year, the insurance company sold 45 properties of different types for €34.5 million in total, according to its annual report submitted to the CNMV. The gross profit from these transactions amounted to €11.3 million, more than twice the amount recorded a year earlier from similar operations. In 2014, Mapfre reported profits of €4.5 million from the sale of properties.

The main asset sold in 2015 was a plot of land in Cotochico, Marbella (Málaga), which was disposed of for €12.2 million. Mapfre also sold the San Javier and San Antonio clinics in Bilbao for €4 million and €3.3 million, respectively. The other 42 properties sold by entity were “minor, non-significant assets”.

On the buy-side, the insurance group did not pass up the opportunity to acquire several iconic buildings. As such, it invested €82 million in the acquisition of a property in Madrid’s Plaza de la Independencia, 6. And, outside of Spain, it bought an office block in One Winthrop Square in Boston (USA) for €55 million. At the end of 2015, Mapfre held a property portfolio worth €2,267.7 million, which represented 4.9% of the entity’s total investment portfolio, which in turn amounted to €46,264.7 million and mainly contained sovereign debt (57.1%) and corporate fixed income (22.5%).

€943.4 million (41.6%) of the Group’s real estate portfolio related to facilities that it makes use of itself, in other words, retail outlets and offices that provide support to the insurance company’s administrative and commercial network. The remaining 58.4% (€1,324.3 million) comprises every kind of asset, available for sale and rent. The occupancy rate of its properties for rent increased slightly with respect to the previous year, to 85.9% at the end of 2015 (compared with 85.5% in 2014).

Unlike other investments in its portfolio, some of Mapfre’s properties are accounted for at book value, i.e. at acquisition cost, and not at market price. Thus, the group calculates that it has unrealised gains of €975 million. Meanwhile, the Group says in its annual report that “the unrealised gains will offset a decrease in property prices equivalent to approximately 30.06% of their own market value”.


Mapfre clarified to the CNMV that the Brazilian CEO, María Leticia de Freitas Costas, has not signed the 2015 accounts yet “due to her inability to attend the Board meeting”, and not because of any kind of disagreement.

Original story: Expansión (by M. Ponce de León)

Translation: Carmel Drake

Sareb Sold 15,000 Assets In 2014

5 February 2015 – Expansión

The Asset Management Company for Bank Restructurings (Sareb) sold around 15,000 real estate assets in 2014, in addition to the 9,000 properties it sold in 2013, according to provisional data released by the company.

Sareb’s Secretary General, Óscar García Maceiras, provided this information on Wednesday during a conference entitled “Sareb’s role in the economic recovery” held in Valladolid, organised jointly by the Business Forum of Castilla y Leon and the Schola Foundation.

In his speech, García Maceiras highlighted the “full capacity” that society has shown to contribute to the clean up of the Spanish banking sector and the reactivation of the real estate sector.

In the two years since it was created, Sareb has generated turnover of more than €8,000 million and has sold more than 24,000 properties (homes, land, adjoining garages/store-rooms and tertiary assets), of which more than 15,000 were sold in 2014, according to provisional data released by the company.

García Maceiras said that this “dynamism” has allowed the company to fulfil “its primary mission”, namely the repayment of the debt issued by Sareb and backed by the State.

In this regard, he added that during its first 24 months, Sareb has repaid €5,000 million and has paid interest amounting to €2,400 on that debt, “and so has reduced the cost to the taxpayer of the financial restructuring by €7,400 million”.

During the conference, Sareb’s Secretary General reiterated the company’s commitment to the real estate sector and noted that in two years, Sareb has handled “more than 18,700 developer proposals, including the sale of collaterals, deeds in lieu, restructurings, disposals and other transactions”.

García Maceiras also highlighted the main challenges facing the company today, including the culmination of the change in its commercial managers, which, once the process for migrating assets has been completed, will be Altamira, Haya Real Estate, Servihabitat and Solvia.

Sareb is a private entity, created in November 2012, to help with the clean up of the Spanish financial sector and of the institutions that received state aid, explained the Company in a press release.

Sareb is committed to proceeding with the liquidation of the properties and loans it has purchased before November 2027.

Original story: Expansión

Translation: Carmel Drake