BBVA Looks for Buyer to Acquire Up to €1.3 Billion in Toxic Real Estate Assets

14 October 2019 BBVA is looking to sell off up to a third of its approximately €1.3-billion portfolio of non-performing real estate assets. The Spanish bank acquired many of the assets during Spain’s financial and real estate crisis when BBVA bought up several of the country’s failing savings banks.

The bank is looking to rid itself of the €3.6 billion in foreclosed assets and €1.345 billion in shares of real estate companies, in addition to unpaid loans from SMEs and individuals valued at about €5 billion.

Some of the groups potentially interested in acquiring the assets include Cerberus, which already bought BBVA’s real estate business in 2018, Apollo, Blackstone, Bain Capital and Lone Star.

The sale, which consists of residential, commercial and land assets is still in its initial phase. However, the bank is looking to complete any sale before the end of the year.

Original Story: Business Insider – Adrián Francisco Varela

Adaptation/Translation: Richard D. K. Turner

Hines Invests in Two Last-Mile Logistics Assets in Villaverde

8 October 2019 Hines, the world’s fourth-largest real estate fund by volume of assets under management, has finalised its first acquisition in the logistics sector in Spain, as the growth of e-commerce continues to roil the market.

The US fund has acquired two last-mile logistics assets in Villaverde, on the outskirts of Madrid, from Allegra. Allegra hired Knight Frank to lead the sale of a portfolio consisting of two warehouses in Villaverde and a plot of land in San Fernando de Henares. Hines paid 20 million euros.

Hines opted to bid for the two warehouses, both of which have a 10-year leasing contract with the logistics operator Ontime. The two units have a surface area of ​​9,798 and 7,676 square meters, respectively.

Original Story: El Confidencial – Ruth Ugalde / Elena Sanz

Adaptation/Translation: Richard D. K. Turner

Retailing Giant Opts to Sell Real Estate Assets Through El Corte Inglés Real Estate

8 October 2019 While the Spanish company El Corte Inglés is one of the biggest retailers in the world, it is also one of the large owners of real estate in Spain.  The firm has assets valued at more than €17 billion. The retailer has given up on a plan, called Operation Green, that the consultancy PwC had designed for the portfolio. Instead, it is now planning on channelling the assets through a new real estate subsidiary, El Corte Inglés Real Estate.  

Original Story: El Confidencial – Ruth Ugalde

Photo: EFE

Adaptation/Translation: Richard D. K. Turner

GreenOak Sells €1.3 Billion Portfolio of Logistics Assets to Patrizia

8 October 2019 GreenOak announced that it was close to finalising a deal to sell a pan-European portfolio of logistics assets to Patrizia, the German real estate investment giant. The German group is in exclusive negotiations with the US fund to acquire the portfolio for roughly €1.3 billion. The two firms expect to finalise the transaction before the end of the current fiscal year.

The portfolio consists of 1.5 million square meters of logistics assets, which the US firm acquired over the last three years for its second pan European logistics fund.

At the same time, GreenOak is acquiring assets for its third fund. In April, the US fund acquired 40,000 square meters of logistics space in the town of Seseña from Pavasal.

Original Story: El Confidencial – Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner

US-Fund TPG Looks to Sell Portfolio of Rental Flats for €75 Million

17 September 2019 The US fund TPG announced its intention to sell nine buildings with rental flats located in Malaga, Tarrassa, Badalona, ​​Girona, Sabadell, Alicante, Valencia, Madrid and Valdemoro. The firm hopes to raise at least 75 million euros through the sale.

The nine buildings have a total of almost 400 flats and 600 parking spaces and are currently 90% occupied. TPG acquired the buildings just over two years ago through its subsidiaries Sardes Holdco and Hadley Investments.

The Catalunya Caixa Propietat FII real estate investment fund, which was liquidated, previously owned the nine residential developments.

Original Story: El Confidencial – Elena Sanz

Photo: E.S.

Adaptation/Translation: Richard D. K. Turner

Blackstone Fails to Sell Portfolio of More Than 1,000 Homes

16 September 2019 – The US-based investment giant Blackstone has cancelled the sale of a portfolio of more than 1,000 un-subsidised rental flats in Barcelona and Madrid. The financial services firm had been asking for approximately 180 million euros for the asset. Market sources see the cancellation as a confirmation that the market is softening due to political uncertainty, regulatory changes and a cooling economy. Blackstone now reportedly plans to sell the properties off piecemeal, much as it did with its proposed sale of three subsidised apartment blocks to Vivenio.

Original Story: El Confidencial – Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner

 

Vivenio Acquires Three Apartment Blocks in Madrid and Barcelona

29 August 2019

Vivenio, a socimi owned by Spain’s Renta Corporación and the Dutch fund APG, has acquired three residential buildings, all currently occupied by rental tenants. The assets, which the socimi purchased from Fidere, will add a total of 500 new flats to Vivenio’s portfolio. Two of the apartment blocks are in Madrid and one is in Barcelona.

The deal, which is tied to a series of conditions, will cost the socimi a maximum amount of 85 million euros. The socimi has already deposited 25% of the total.

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

Santander Studying €12-Billion Sale of NPAs

20 August 2019

Banco Santander is considering a potential sale of a €12-billion portfolio of real estate loans by the end of the summer.

The bank is looking to improve its capital ratios in Spain, which are still weighed upon by assets the bank took over from Banco Popular, in spite of a €30 billion sale of assets to Blackstone in 2017, Project Quasar.  On Tuesday, the bank reported that its NPL ratio stood at 7%, above rival banks such as BBVA Spain (-4.9%) and CaixaBank (-4.6%).

Original Story: El Confidencial – Jorge Zuloaga

Adaptation/Translation: Richard D. K. Turner

US Fund Cain to Acquire Portfolio of Second Tier Offices from Merlin Properties

15 August 2019

Cain, a real estate investment fund, is in talks with Merlin Properties to acquire a portfolio of second-tier office assets for more than 200 million euros. The US firm is currently concluding the process of arranging financing to acquire the portfolio. Cain is investing in the assets in conjunction with the Freo Group.

The portfolio, known as Project Juno, is made up of Merlin’s second-tier office holdings, which do not currently fit into the Spanish socimi’s investment strategy. Such offices, however, are also highly in demand at the moment.

The portfolio’s assets include the Miniparc complex, in Soto de la Moraleja (Madrid), the headquarters of Informática El Corte Inglés, in Mirasierra to the north of Madrid and the Európolis complex, in Las Rozas.

Original Story: El Confidencial – Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner

Spain’s Banks Continue to Suffer from High Levels of Exposure to Non-Performing Real Estate Assets

13 August 2019

Spain’s largest financial institutions still have more than 37 billion euros worth of non-performing real estate assets on their books, not counting non-performing loans, even after a series of major disinvestments over the past two years. The bank with the most significant exposure, Santander, sold €30 billion in assets to Blackstone; while BBVA sold another €13 billion to Cerberus. CaixaBank unloaded a €12.8 billion portfolio to Lone Star as Banc Sabadell sold assets totalling €10.1 billion to Cerberus and Oaktree.

EU banking regulators are pressuring the banks to quickly reduce their exposure even further, setting a high bar for the expected pace of disinvestment over the coming years.

Santander still has €10.132 billion in foreclosed assets, over 16% more than the bank with the second-highest exposure: Sabadell (€8.732 billion). Santander’s exposure to land is especially high, with a portfolio with a gross value of €4.37 billion. Thus, the bank recently created a company to prepare the portfolio for an eventual sale. The new company, Landmark Iberia, has 400,000 square meters of developable land for sale.

Original Story: El Confidencial – Jorge Zuloaga

Adaptation/Translation: Richard D. K. Turner