Who Are The New Owners In Spain’s RE Sector?

11 April 2017 – Cinco Días

Two weeks ago, Neinor Homes debuted on the stock market, the first residential property developer to do so in a decade. (…). Who is behind the current transformation of the sector?

Neinor Homes was created just two years ago by the US fund Lone Star, which purchased the former real estate arm of Kutxabank for €935 million. The Texan firm injected capital, bought land, renewed the image and put its first cranes in place to surf the top of the wave of the recovery in the house construction segment. The company debuted on the stock market, much more quickly than it had initially planned, with a valuation of €1,300 million, and an excess of demand over supply of 4.3 x, from large investors.

The real estate company led by Juan Velayos, as CEO, and Juan Pepa, as Lone Star’s strong man in Spain, has demonstrated investors’ appetite for residential construction – the last segment to recover in the real estate sector. Experts indicate that demand for homes in Spain will amount to around 150,000 properties per year, compared with the 50,000 units that are currently being constructed. This is a space that nobody has occupied in recent years, following the death of classic developers such as Martinsa-Fadesa, Reyal Urbis, Astroc, Nozar and Habitat.

But Neinor is just the first of many. It is being followed by the US fund Värde Partners, possibly the most active in terms of purchases in Spain, which created Dospuntos using its own land and the basis of the former real estate business of Grupo San José. Last month, it starred in its latest large acquisition, purchasing Vía Célere, the property developer created by Juan Antonio Gómez-Pintado, for €90 million. (…).

And following both of them is Aedas, backed by the fund Castlelake, which is also proving very active in creating an enormous bank of land. These three real estate companies alone are expected to invest around €5,000 million in land, purchases and investments. And the latter two may well follow in Neinor’s footsteps with stock market listings.

These new property developers are replacing the Socimis in the newspaper headlines (…), which since 2014 have been active in the first segment to experience the recovery, namely, rental assets: large office buildings, commercial premises, shopping centres, hotels and industrial warehouses.

The leader in that sector is Merlin Properties, which has become one of the leading real estate companies in Europe, with a portfolio of assets worth €9,800 million. (…).

The other large Socimi that has attracted international capital since 2014 is Hispania, managed by Grupo Azora, a Spanish fund backed by Concha Osácar and Fernando Gumuzio. (…). It has become the largest purchaser of hotels in Spain, with a giant portfolio worth €1,800 million.

Lar España, managed by Grupo Lar, and Axiare, chaired by Luis López de Herrera-Oria are the other large Socimis on the main stock market, which have created net assets worth more than €1,200 million in record time. But they are not the only ones. Attracted by the tax benefits, many wealthy families have also used this legal structure to organise their assets. Examples include the Montoro Alemán family with the Socimi GMP (…).

Not to mention the large international real estate funds, such as Blackstone, Cerberus, Iba Capital, TH Real Estate, Orion, HIG and GreenOak, which, together with the Socimis, have been and are the most active players in terms of acquisitions.

The Barcelona-based firm Inmobiliaria Colonial has also undergone a comprehensive clean-up, with the segregation of its toxic land and residential business, to become the second-largest real estate company in the country, after Merlin. (…).

Meanwhile, Metrovacesa has headed in the opposite direction. After transferring its tertiary business to Merlin, it is now getting ready to become one of the major players in the residential sector, with the backing of BBVA and Santander. Similarly, the Mexican magnate Carlos Slim has revived Realia, also giving new life to the dead activity of house construction.

Other key players in recent years have been the banks’ platforms or servicers, such as Aliseda, Anida, Solvia, Altamira and Servihabitat, which have been managing the real estate portfolios of the financial institutions and promoting housing developments. (…).

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

HIG Acquires Malaga Residential Complex

24 January 2017 – Property Week

A client of the private equity firm HIG Capital has acquired the 430-unit Valle Romano apartment complex in Estepona, Málaga.

The property, which includes swimming pools, restaurants and a gym, has a total surface area of about 495,000 sq ft.

“This is our seventh investment in Spain in the past three years”, said Riccardo Dallolio, Managing Director at HIG in London.

“Spain represents an important part of our European strategy and we continue to seek additional small and mid-cap, value-add, investment opportunities to increase HIG’s presence in this market”.

HIG is based in the USA but has offices in 8 countries around the world, and currently manages more than €22bn of equity capital.

Original story: Property Week (by Emanuele Midolo)

Edited by: Carmel Drake

Encore+ Acquires Shopping Centre In Bilbao

4 December 2015 – Expansión

The real estate fund Encore+ has completed the purchase of the Bilbondo shopping centre in Bilbao. The property has a surface area of 40,000 m2 as well as 2,000 parking spaces, and was previously owned by another international fund, CBRE Global Investors.

Encore+ has closed the purchase through its management company LaSalle Investment, which shall manage this shopping centre alongside Aviva Investors. The establishment’s main appeal is its high occupancy rate in an area of influence that spans one million people.

The property was acquired from Eroski in 2010 by the then real estate arm of ING (now CBRE Global Investors) for around €50 million. Now, Bilbondo has been transfered for €60 million. “We are very happy to be incorporating this real estate asset into our portfolio, whereby expanding our exposure in Spain, where we expect to see considerable growth”, explains Gil Bar, the fund manager for Encore+ at Aviva.

Through this deal, the fund, which focuses its investments in continental Europe, joins the long list of international companies that have closed purchases of commercial assets in Spain in the last year, such as HIG and Kennedy Wilson, amongst others.


Meanwhile, Mazabi Gestión de Patrimonios, the Spanish group that manages more than €750 million of real estate assets for several large, wealthy Spanish investors, has closed the acquisition of two hotels, the Iberostar Santa Eulalia in Ibiza and the Iberostar Costa del Sol, in Estepona (Málaga) for €60 million.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Kennedy Wilson Buys ‘Moraleja Green’ From ING

2 November 2015 – Expansión

Another shopping centre is changing hands barely a year after it was last sold. Later this week, the Moraleja Green shopping centre in Madrid, will have a new owner, twelve months after being acquired by the Dutch bank ING.

The financial institution, which purchased the property through one of its real estate funds, has decided to transfer ownership of the building to the US fund Kennedy Wilson. According to sources in the sector, ING will receive between €70 million and €75 million for the Madrilenian centre, which it acquired for €68 million in November 2014. This increase reflects the on-going appreciation in real estate assets in Spain, particularly for offices and shopping centres.

Cushman & Wakefield and Dentons have advised the buyer in the operation, whilst Deloitte and DLA Piper have advised on the sell-side. The agreement between both parties is absolute and will be announced officially this week.

The shopping centre is located in the northeast of Madrid, next to the exclusive La Moraleja urbanisation. It occupies a surface area of 76,763 m2 and 29,600 m2 is used for retail space. The centre’s main tenants include the supermarket chain Sánchez Romero, Inditex – with its brands Zara, Massimo Dutti and Oysho – and H&M.

The Moraleja Green centre was inaugurated in April 1995. Its developers were the real estate companies Metrovacesa and BBV Inmobiliario. It was expanded in 2001 and receives 3.38 million visitors (per year), according to the Spanish Association of Shopping Centres.

The new owner is the US fund Kennedy Wilson. The North American firm has been one of the most active players in Spain the most in recent months. Its latest operations include the purchase of 16 retail spaces, nine supermarkets and seven shops, leased to Carrefour and Día. It paid the fund AEW Europe and a French institutional investor €85.5 million for that portfolio.

The wider market

As a result of this deal, Moraleja Green will join the list of shopping centres that have changed hands during 2015, which also includes Plenilunio, acquired by Klépierre for €375 million, and Zielo Shopping, bought by UBS for €70 million.

Another shopping centre that has changed hands twice in just over a year is Parque Ceuta. A few months ago, the Brazilian group Hemisferio bought the Ceuta-based centre from the fund HIG for €26 million. The US fund had acquired it in January 2014 for €18 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Objects Of Desire: 16 Shopping Centres Up For Sale

14 May 2015 – Expansión

Between January to March (2015), funds and Socimis have invested €988 million in the purchase of large shopping establishments; and that figure that could reach €2,500 million for 2015 as a whole.

The 682 shopping centres in operation in Spain have become objects of desire for all investors interested in the Spanish real estate market. Thus, between January and March, these investors spent €988 million on the purchase of all kinds of shopping centres. “In January 2014, institutional investors did not want to purchase in Spain and now we have a very wide range of buyers: from institutions, which do not mind paying more for a good property, to opportunistic funds”, explains Vitor Pacheca, Senior Consultant of Retail Capital Markets at JLL España.

Last year, the Spanish market was the fourth favourite in Europe for investors interested in shopping centres and retail parks, with transactions as significant as Puerto Venecia in Zaragoza, which the British group Intu purchased for €451 million, having purchased Parque Principado in Asturias in 2013. Those are not the only real estate projects being pursued by the British real estate firm in Spain; it is currently developing two (shopping) centres, one in Malaga and the other in Valencia.

The most high profile case in 2015 has been Plenilunio. The Madrilenian property was acquired by the French operator Klépierre for €375 million on 17 March. The As Termas shopping centre in Lugo also changed hands; it was purchased by the Socimi Lar España. And AireSur in Sevilla was acquired by the fund CBRE Global Investors. “Last year, 28 (shopping) centres were bought and sold, representing a total investment volume of €3,200 million. In 2015, we expect that more centres will be sold but for a smaller total amount, around €2,500 million”, says Pacheco.

Although the flurry of transactions is not expected until the final quarter of the year, several shopping centres are scheduled to change owner shortly. “There are around 16 shopping centres for sale in Spain at the moment. We estimate that as many as 30 such assets may change hands between now and the end of the year”, say sources at JLL.

Doughty’s centres

That is the case of El Rosal in León and Plaza Éboli (pictured above) in Pinto (Madrid). The private equity firm Doughty Hanson is finalising the sale of those two properties, whose ownership will be transferred over the next few weeks.

The Plaza Éboli shopping centre, which was opened in 2005 and measures 62,000 m2, will be acquired by the US investor HIG for €30 million. In the case of El Rosal, which measures 151,000 m2, the new owner will be the Socimi Lar España, which has already purchased other shopping centres such as L’Anec Blau in Castelldefels (Barcelona) and Albacenter in Albacete. The Socimi will pay €90 million for El Rosal.

Another one of the 16 shopping centres up for sale is Moraleja Green in Alcobendas (Madrid). The property is on the market again after it was sold to ING by CBRE Global Investors last year. Now, the real estate division of the Dutch bank is putting it up for sale, after paying €68 million.

The Heron City shopping centre in Barcelona is also up for sale; it opened in 2011 and occupies a surface area of 101,000 m2, of which 36,358 m2 is dedicated to retail space.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Who Are The New Property Owners?

20 April 2015 – Expansión

Plans / International funds and Socimis are the main players in the sector

Apollo, Blackstone, Cerberus, HIG, Hispania, Intu, Lone Star, Merlin and Oaktree have gone from being virtually unknown names to being the key players in the Spanish property market (in a matter of months).

Over the last year and a half, large international funds have been investing hundreds of millions of euros in the purchase of property in Spain, both directly as well as through listed real estate investment companies (Socimis).

Värde, Apollo and Lone Star all burst into the market by purchasing real estate platforms from financial institutions. The latter has said that it wants to become the largest land developer in Spain and to that end, it is considering purchasing not only portfolios of land but also small and medium-sized (land) developers. Lone Star has already purchased the real estate arm Neinor from Kutxabank for €930 million, as well as Eurohypo’s loans in Spain for a further €3,500 million.

HIG and Castlelake are looking to buy land in Spain too.

Another investor that is backing Spain with more strength than ever is Blackstone. The largest fund manager in the world has purchased 1,860 homes for rent, as well as a group of office buildings, located in Madrid and Barcelona. One of the players that is most interested in the office market is the Spanish fund Meridia Capital, led by the former Sareb (director) Juan Barba; it has purchased a portfolio of office buildings from General Electric. It is competing against IBA Capital – the French manager has created a Socimi, which has not yet been listed, with headquarters and commercial buildings.

Along with these offices, the other assets that are sparking the most interest amongst investors are shopping centres. Green Oak has already invested €160 million together with Baupost on the acquisition of 6 properties from Vastned. The British group Intu wants to become the leading player in this segment in Spain and to that end, it paid €451 million for Puerto Venecia. Oaktree spent €100 million on Gran Vía de Vigo.

Other important players in this new era for the real estate sector are Socimis. Axia RE, Hispania, Lar España and Merlin have invested almost €3,000 million in assets, which include hotels, offices, logistics centres and warehouses. This last type of asset is attracting considerable interest. The fund Colony has just formed a partnership with the Spanish company Neinver to purchase 16 logistics warehouses.

Finally, in the hotel segment, Cerberus and Orion have purchased Sotogrande, the real estate subsidiary of NH for €225 million.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Spain: for sale.

Spain is for sale. And finally, it seems there are buyers. Dozens of investment funds from all over the world, but mostly from the United States, are buying apartment blocks, real estate firms, and even company debt. There are some vulture funds out for a quick buck, but most are looking for medium-term returns. “Two years ago, Spain was radioactive, and the property sector toxic. Suddenly it’s become our savior; it’s that stupid,” says one veteran real estate developer on condition of anonymity.

On February 7, 2012, when the future of the euro was still in the balance, Jaime Bergel, a former board member of energy giant Endesa, opened an office for 13-billion-dollar US investment fund HIG Capital in Madrid. “We had a feeling that people would come here looking for opportunities,” he says. In fact Merrill Lynch and Goldman Sachs were already here.

On August 6 of this year, HIG carried out its so-called Operation Toro, the first major sell-off of property accumulated by Sareb, the bank set up by the government to hoard unsold property and debt belonging to the country’s failed savings banks. HIG bought around 500 properties for a total of 50 million euros. Most of the properties are low-cost apartments in the outskirts of Madrid, Valencia, Seville, Málaga, Murcia and in the Canary Islands that so far nobody wants.

Investment funds have spent around two billion euros buying up property in Spain since April. Some experts are interpreting the great sell-off as good news, flushing the financial system with new money; others say that it is a de facto takeover of a significant chunk of the economy by foreign capital.

“We are looking for businesses with good assets and that are well managed but that can’t get their hands on the capital they need. We lend them the money and let them get on with running the business,” says Jesús Olmos, KKR’s representative in Madrid. In April, KKR lent 320 million euros to construction materials manufacturer Uralita over a seven-year period, and it has also taken positions in parking lot firm Saba and helicopter maker Inaer.

In 2008 Juan Vizcaíno, once of Lehman Brothers, set up Hipoges, which specializes in managing distressed assets. He now employs around 80 people in Madrid, and already manages assets valued at 2.3 billion euros, most of them in the form of property and bought at knock-down prices from the banks. “Most of the property we buy is new and hasn’t even been lived in. It was bought as an investment by people who have now gone abroad,” he says.

Vizcaíno says the toxic assets business has grown so fast that he has had to move office twice as he takes on new staff to keep up with demand. His current offices occupy more than 1,000 square meters in downtown Madrid: “We are spectacularly busy. Interest in Spain has multiplied tenfold,” he says.

In August, the owners of Mexican fund Fibra Uno bought more than 900 offices that had originally belonged to Banco Sabadell, which the bank had sold to a US fund for 300 million euros. The Catalan regional government sold 13 buildings to French company AXA for 172 million euros in a deal that sees the government pay rent on them. With a profit rate of 9.45 percent, in just under a decade AXA will have recouped its investment in rent alone.

Meanwhile, the Popular Party-controlled regional government of Madrid is busy selling off chunks of housing stock built for low-income families. On June 24, Madrid’s Municipal Housing and Property Company (EMVS) said that it had sold 1,860 low-rent apartments to Blackstone, an associate of Spanish property developer Magic Real Estate, for 128.5 million euros. Blackstone is one of the world’s largest investment funds, with assets of 60 billion dollars.

The purchase looks like a classic vulture fund move: buying where nobody else dared to strip the assets and sell as soon as possible. “Blackstone knows that 85 percent of property in Spain is privately owned, with just 15 percent rented out. The average in Europe is 70/30. Eventually Spain will get to that point. If the figure shifts from 15 percent to 25 percent, that is 2.7 million properties that will enter the rental market. In Germany, Blackstone has 50,000 properties for rent, but until now, there weren’t enough properties available for it to be worth buying in Spain,” says a source close to the operation.

Blackstone is obliged to continue the low-rental policy for a decade, during which time it will operate a zero-tolerance policy toward tenants who fall behind with payments, and after which it can rent them out at higher prices. Most of the properties are in the working-class district of Carabanchel, in the southwest of the city. Speaking to tenants in one block that has been sold off, it is clear most have no idea who the new owners of their homes are. One man says he has stopped paying his rent because he no longer knows who to make the transfer to. Average rents here are around 200 euros a month for a three-bedroom apartment. Many homes have never been occupied.

In August, the Madrid Housing Institute (Ivima), also set up to provide low-cost housing, sold 2,935 low-rent apartments in the working-class dormitory town of Parla to Goldman Sachs and Azora for 201.2 million euros. Azora already manages some 7,000 of these properties slated for social housing, along with student residences and hotels, all valued at 1.3 billion. Fernando Gumuzio, the company’s founder, says the firm charges rents of between 250 and 600 euros.

Gumuzio rejects the idea that companies like his are vultures circling the moribund carcass of the Spanish economy: “I prefer to call them opportunists. They are investing in problem companies, and helping to clean up their debts. This is the first step toward recovery. Later on, the institutional funds will move in.”

Rafael Powley of US consultancy Jones Lang LaSalle explains that investment funds are awash with cash after taking advantage of the collapse of the US property market and its subsequent recovery. “There are a lot of people who made a lot of money buying cheap, and want to repeat their success here.”

The figures suggest that property prices in Spain may well be bottoming out. The price per square meter for office space on the Paseo de la Castellana, Madrid’s upscale central thoroughfare, has been stable for a year now. At the height of the property boom, prices were 13,000 euros per square meter; the rate is around 6,500 euros. “The speculative market is always ahead of the real economy: that’s how you make money,” says Juan Manuel Ortega, who heads Jones Lang LaSalle’s operations in Spain. He says that three years ago, most of the firm’s clients were looking for advice on how to get out of Spain; “now they want us to tell them what to buy.”

Powley explains that most of those rushing to buy now are the same companies that inflated the property bubble of the late 1990s and early 2000s: “In those days, a developer would call you to say that he had sacked his sales team because they had sold his property so quickly that he hadn’t been able to put the prices up.”

Ismael Clemente hails from a tiny community in the western province of Badajoz and has many years of experience in the property business. Before setting up Magic Real Estate, he headed the property division of Deutsche Bank in Spain. In November 2005, seeing which way the wind was blowing, he advised his bosses to get out of the Spanish property market before selling the Hotel Arts in Barcelona in early 2006. The bank made 170 million euros on the deal, selling the hotel to a Dutch group and Singapore’s sovereign wealth fund. “We lost 18 months, but we made up for it with that sale,” he says. Magic is now a partner with Blackstone.

Clemente explains some of the key points of Spain’s emerging property market: “Buying a shopping center in Leipzig is barely profitable, and one setback and you are down on the deal. So the idea is to get into other markets. Prices are back up in Dublin, London is enjoying its own particular boom, while France is beginning to look weak. A shopping center in Valladolid is more risky, but twice as profitable if you handle the purchase properly. That’s why the investors are here. People see these funds as pirate ships, but they are playing with other people’s money. Vultures serve a function: they clean up corpses. It’s the same here: they pump money into a market starved of funds.”

He says that Blackstone’s entry into the Spanish market has sent out a message of confidence: “Investors are like sheep. If things go badly here, these funds can always tell their investors that everybody else was here, and nobody could see what was going to happen.”

Some funds have already set aside fixed amounts to invest in Spain. “A client called me a couple of days ago saying he had 500 million euros to spend in Spain,” says Iñigo de Luisa, a partner at law firm Cuatrecasas. “This summer we have seen a lot of activity: I haven’t seen anything like it since the boom.” De Luisa specializes in buying debt, and advised the Bermudas project that saw Sareb sell 245 million euros in loans owed by Grupo Colonial to Burlington Loan Management. The mechanics of these operations is not rocket science: if a company owes 100, the funds buy the loan for 70, or much less, dependent on the risk. If they get the money back they have won; if not, they keep the property portfolio, which is worth more than the 70 they put up.

The party has barely started. Spain’s banks have huge numbers of apartments that sooner or later they must sell. The vulture funds have taken the first step by taking over the property divisions of Bankia (bought by Catalana Bank and Cerberus, a company partly owned by the son of former Prime Minister José María Aznar, whose government in the late 1990s oversaw the property boom). Meanwhile, La Caixa is negotiating the sale of 51 percent of Servihabitat to the Texas Pacific Group.

The country’s regional administrations are also keen to sell off their property assets, often at fire-sale prices, in a bid to generate desperately needed cash. Andalusia, Catalonia, and Valencia were the first to begin offloading publicly owned property: in total some 144 buildings that they hope will raise around 2.2 billion euros.

British investment company Moor Park, which is tied to risk fund Och Ziff, offered the Catalan regional government 450 million euros for 26 buildings it would then rent out to it. The offer was tempting, but the regional government eventually decided that the conditions were not up to scratch. The buyers wanted to be paid in dollars or Swiss francs. “At the height of the euro crisis, what sort of message would that have sent out?” say sources close to the Catalan government.

Murcia has put the seat of the regional government up for sale; Extremadura is also keen to reduce the size of its property portfolio; Asturias is looking for a buyer for its offices in Madrid and Brussels; the Canary Islands has palaces for sale; and Castilla-La Mancha has so far not found a buyer for 16 government buildings. But a consultant who has acted as an intermediary in the sale of government buildings to foreign investment groups says that only Madrid and Barcelona have any appeal. The regional government of Madrid has already put 11 buildings up for auction this year with a starting price of 32 million euros. But for Madrid City Hall, it was only after dropping the price by 40 percent that it managed to sell its environment department’s offices for 21.8 million euros to the Bank of China. The Valencian regional government says that it is in advanced talks to sell three buildings.

More and more properties owned by regional and municipal governments are expected to come onto the market in the coming months. The central government has so far only raised 90 million euros since 2012 from selling off its property portfolio, but now says that it is to put more than 15,000 properties on the market, among them 61 apartment blocks, almost 7,000 houses, and 800 stores. No price has been agreed, say sources at the Economy Ministry.

This macro-sale includes some attractive assets, as well as many that will prove tricky to dispose of. For example, the former headquarters of the National Stock Exchange Commission on the Castellana, valued at 30 million euros; the building formerly occupied by the RTVE state-owned radio and television company, just round the corner, along with properties in other upscale areas of the capital. The government even wants to sell 14,000 hectares of the Alcornocales natural park in Cádiz, offering permission to the buyer to build an aerodrome, two golf courses and a luxury hotel. As Spain goes on sale, nothing is beyond the bounds of possibility.

Sareb awards real estate assets valued at 100 million Euros to the venture capital fund HIG.

The awarded portfolio is made of nearly a thousand properties, located mainly in the Valencian Community, Andalusia, Murcia, the Canary Islands and Madrid. Several firms such as KPMG, which has acted as a financial advisor, Baker & McKenzie, Ashurts and Monthisa have participated in the operation.

Sareb, known as the “bad bank”, finished yesterday the awarding process of its first package of real estate assets, known as “portfolio Bull” to the venture capital fund HIG Capital, which will close the operation through its subsidiary Bayside Capital.

As announced by Sareb , the portfolio of assets awarded to HIG is valued at 100 million Euros and is made of a total of 939 properties located in Andalusia (275), the Canary Islands (129), Cantabria (5), Catalonia (38), the Valencian Community (343), the Balearic Islands (19), Madrid (86) and Murcia (44).The package also includes 750 annexes (garage spaces and storage rooms) and trade premises.

This is the first real estate operation carried out by the so called “bad bank” in the wholesale market where several consultants, such as KPMG, as a financial advisor, Baker & McKenzie, Ashurts and Monthisa have participated. The design of the operation, structured through a Banking Assets Fund (BAF), (the first one created in Spain, according to Sareb) and which will operate as a joint venture, will allow the “bad bank” to participate in the future benefits. The bad bank will have a participation of 49% in this investing vehicle, onto which all real estate assets from the “portfolio Bull” will be transferred, while HIG Capital will own the remaining 51%.

In accordance with the terms of the transfer, the properties being transferred to the BAF will be managed by an independent operator chosen by the investor, the Spanish company Monthisa, with a long experience in the real estate management.

Belén Romana, president of Sareb, has pointed out the interest arisen among foreign institutional investors. In her opinion, “the quality of the offers shows the confidence all investors have in Sareb and in the recovery of the Spanish real estate market”.

Those in charge of the bad bank assure that when deciding for the offer of HIG Capital they have taken into account “the structure of distribution of the earnings and the presented business plan, which provided a higher potential return on the investment made”.

HIG Capital, has a portfolio of more than 10.000 million Euros and in Spain, where it has a significant presence, it is led by Jaime Bergel.