Bami Newco Files For Voluntary Liquidation

30 January 2015 – Inmodiario

Bami Newco, the real estate company controlled by Joaquín Rivero, which filed for bankruptcy in mid-2013, has now filed for liquidation, according to a ruling issued by the Commercial Court number 2 in Madrid. The company, which has debts of €652 million, proposed its liquidation under the Bankruptcy Law, after it was unable to reach a refinancing agreement with its lender banks.

Bami holds assets amounting to €726 million to meet its liabilities, according to a report published by the insolvency administrator in mid-2014.

The company was founded in 2007 after exiting Metrovacesa’s share capital, a real estate company in which Bami become the controlling shareholder following the takeover it launched in 2004.

The new real estate company voluntarily filed for bankruptcy after, at the end of 2012, Rivero and the Soler family also declared bankrupt the companies through which they channelled the stakes (16.6% and 15.6%, respectively) they then held in the French real estate company Gecina. In 2013, they sold the debt linked to those investments, which were guaranteed by Gecina’s own shares, to the funds Blackstone and Ivanhoé Cambridge.

The company voluntarily filed for bankruptcy after failing to reach a long-term refinancing agreement with its bank syndicate that would have given it the financial stability necessary to continue its activity.

The company has a portfolio of office buildings located in the North of Madrid, totalling 127,500 square metres, with an average occupancy rate of 90%, backed by long-term contracts with highly solvent clients, including several Ibex 35 companies. Moreover, the company had plans to construct two buildings in the “Adequa” business park, which would have resulted in an additional 27,000 sqm.

Bami closed 2012 with a loss of €15 million, as a result of the cancelation of its derivative hedges and the impairment loss it recorded on buildings that had not yet become operational.

Despite having paid the interest on its debt on a timely basis since its constitution, and although most of its debts were due to mature this year, the real estate company decided that filing for bankruptcy was essential, since without long-term, stable financing, the business will be unable to develop its property portfolio and carry out its projects.

Original story: Inmodiario

Translation: Carmel Drake

Bankia Habitat Returns To Profitability Thanks To A Tax Credit

26 January 2015 – Expansión

Bankia has cleaned up its real estate subsidiary with a fund contribution and a tax credit. The application of deductions for deferred taxes allowed Bankia Habitat to emerge in 2013 (the latest data published by the entity) from the losses it had recorded in previous years.

The real estate company recorded losses before tax of €86 million, which were offset by the application of deferred taxes amounting to €383 million, taking the net profit of the company to €297 million, compared with a loss of €1,347 million in 2012. This result offset losses recorded in previous years. Furthermore, Bankia Habitat reversed certain asset impairment losses amounting to €68 million, to take the total cumulative profit for the year to €350 million.

In parallel, Bankia restored the equity balance of its subsidiary by completing two debt-relief transactions, whereby injecting €700 million and €606 million of its own funds into the real estate subsidiary. This inflow of €1,306 million allowed the group to rebalance the company’s equity. Its own funds amounted to €995 million at the end of 2013, compared with a negative figure of €607 million a year earlier.

Bankia Habitat has accounted for a credit amounting to €596 million, demandable by the Public Administration, for deferred tax assets arising from losses, according to its audit report for 2013. Bankia Habitat’s total deductions pending offset amount to €221 million at the individual level and €2,451 million at the consolidated level.


These amounts have been generated since 2004, although the bulk was recorded between 2008 and 2012. The timetable for realising the outstanding deductions finishes in 2013 and is conditional upon the company generating profits.

Bankia Habitat was the focus of many of Bank’s solvency problems. The solution began with the transfer of some of its assets to Sareb at the end of 2012, for a consideration of €1,250 million. The bank signed an agreement with Haya to manage the marketing of the Group’s properties.

Original story: Expansión (by E. del Pozo)

Translation: Carmel Drake