15 November 2016 – Invertia.com
Sareb expanded its portfolio of rental properties during the first half of the year, from 3,831 buildings at the end of 2015 to 4,558 at the end of June 2016.
According to the so-called bad bank’s half year report, 3,900 of the properties are residential assets and 675 are dedicated to tertiary use. (…).
With this boost to its rental strategy, Sareb is looking to increase the value of its rental properties with a view to their possible sale. This would allow it to recover its costs in the case of sub-optimal buildings by exiting from them.
To create this portfolio, Sareb has defined the perimeter of the assets in this category, something which will help the servicers – Altamira, Haya RE, Servihabitat and Solvia – market them for rent and, in some cases, make them attractive for sale.
Avoid defaulted payments
Subsequently, the bad bank conducts a tenant selection process, for rental purposes as well as for sales, with the aim of finding people who will allow them to reduce their defaulted payments to a minimum.
Sareb explains that homogenous selection criteria are applied by all of the servicers to guarantee the rents and, in the event of divestment, an appropriate valuation of the “live” lease contracts.
The so-called bad bank has also identified several housing developments that are pending completion or renovation, andit has approved, or is in the process of analysing, their completion. “The aim is to rent those properties out in order to avoid impairment, cover costs and facilitate their future sale”, says the bank.
During the first six months of the year, Sareb also tried to recover “overdue rents corresponding to valid contracts” with the aim of improving revenues and/or taking over the properties for their subsequent sale.
Original story: Invertia.com
Translation: Carmel Drake