BBVA Sells Two Real Estate Portfolios Containing Hotels & Offices

29 May 2015 – Bloomberg

Banco Bilbao Vizcaya Argentaria SA is selling two real estate portfolios in Spain that include hotels and offices, according to documents seen by Bloomberg News.

The package of hotels, called Otelo, consists of 18 properties located throughout the country with a total of 2,050 rooms, according to the documents. The commercial portfolio, called Zafiro, comprises 15 offices, logistics and retail units.

No value was included in the documents and a spokesman for BBVA in Madrid declined to comment on the sale.

Investors are targeting commercial real estate in Spain as the economy recovers and the euro’s slide against a basket of currencies encourages more visitors. A record 65 million tourists arrived last year, and in the first two months of this year, spending by vacationers increased by 8 percent, compared with 2014, to €6.6 billion ($7.2 billion).

The deadline for binding bids for the hotels, only six of which are open, was on April 27, according to one of the documents.

BBVA intends to conclude the sale of the Zafiro package by September, according to one of the documents. It consists of 139,000 square meters (1.5 million square feet) of real estate and 1,300 parking spaces.

Original story: Bloomberg (by Sharon Smyth)

Edited by: Carmel Drake


BofA In Final Talks To Buy Hotel Loans From Bankia

27 May 2015 – Bloomberg

Bank of America Corp. is in final talks to buy loans with a nominal value of c. €400 million ($436 million) from Bankia SA, backed by hotels in Spain, said two sources close to the transaction.The loan package, called Castle, will likely be sold for less than the nominal value of the borrowings, said the sources, who asked not to be identified because the information is not public. They declined to elaborate on the size of the discount.

A spokesman for Bankia, Spain’s fourth-largest bank, declined to comment. An external spokeswoman for Bank of America in Madrid was not immediately able to comment.

Investors are targeting hotels in Spain as the economy recovers and the euro’s slide against a basket of currencies that include the pound encourages more foreigners to visit the country. A record 65 million tourists came to Spain last year, with the largest share, 15 million, coming from the U.K. In the first two months of 2015, spending by visitors rose an annual 8 percent to €6.6 billion.

European banks and asset managers plan to sell or restructure €70 billion of riskier real estate as they try to clean up their balance sheets, Cushman & Wakefield Inc. said in an April report. The region’s lenders, asset managers and bad banks such as Spain’s Sareb sold €12 billion of loans tied to property during the first three months of the year, Cushman & Wakefield estimates.

Original story: Bloomberg (by Sharon R Smyth)

Edited by: Carmel Drake