Sareb

Assets

Real Estate

For June, 2013 all in Sareb base there are 55,700 objects of housing and 30,000 accompanying assets (garages, utility rooms, etc.) and also 15,000 land plots.

Besides, the "bad" bank implements 185,000 square meters of office space, 30 hotels and 150,000 square meters of premises in the shopping centers available to lease.

History

2012

Super mortgage

The Santander bank signed the agreement with "bad" bank on creation of the special line of financing for purchase of housing. According to the Spanish news agencies, this financial product provided on favorable terms received the name Superhipoteca Sareb-Santander.

As representatives of "bad" bank reported, this program will cover the completed housing objects having everything necessary licenses. In addition to housing, Santander will be able to finance purchase of the non-residential real estate assets which are at the disposal of Sareb – in particular, warehouses, commercial premises and hotels.

In case of housing intended for full-time residence, the term of a mortgage can be up to 30 years, and the amount of financing – up to 80% of project cost. The interest rate begins from the mark Euribor + 2.25%. For holiday apartments the maximum amount of financing will be 60% of project cost, and a payment due date – up to 25 years at Euribor rate + 3%.

Besides, for corporate clients special preferential terms of loan granting and leasing are provided. The agreement works till December 31, 2014 with a possibility of prolongation. The Santander bank will select 1 billion euros for its implementation.

The CEO of Sareb Walter de Longa noted that agreements on financing are "a crucial element in policy of sales of "bad" bank and extremely important tool in terms of promotion of a business activity".

Reduction of prices of the real estate

In the middle of June, 2013 it became known that the Spanish "bad" bank (Sareb) made the decision to reduce the prices of the real estate assets transferred to it in connection with the low level of sales.

Since February, 2013 only 550 transactions whereas in 2013 Sareb is going to sell 7,528 objects were closed. Therefore the management of "bad" bank decided to remove a 25 percent margin on housing cost. Initially it was set upon the demand of the banks which transferred the real estate belonging to them in Sareb. The margin had to provide annual profitability in the amount of 15% for shareholders of "bad" bank (Fund of bank restructuring and the main Spanish banks except for BBVA) and high bonuses for property sale to financial institutions and the realtor companies.

However, the housing prices set by "bad" bank exceeded market, doing its activity ineffective.

2014

Transfer of a real estate portfolio to FAB

In January, 2014 it became known that Spanish Bad bank (Sareb) signed the devolution agreement of a portfolio Teide which includes more than one thousand objects of housing, garages and utility rooms and also several projects under construction, commercial premises and the land plots^[1].

Transaction by which preparation the portfolio was estimated at 146 million euros will be carried out through Fund of bank assets (FAB) and will allow "bad" bank to get profit on each of future sales of these assets as he is a minority shareholder of the new organization. More than 1000 objects in Madrid, Andalusia, Castile and Leon, Catalonia and Galicia are a part of a portfolio.

The new fund is already registered in the National Securities Commission (CNMV). Under the terms of the agreement, the Grupo Lar group which also possesses a small amount of stocks of the project company will manage FAB which are at the disposal objects.

FAB are the financial instruments created only for Sareb and directed first of all to service of institutional investors. They provide to investors effective structure of work.

the Bank of Spain sells Bad on 45 apartments and houses a day

In August, 2014 it became known that Sareb sold for half a year 8100 real estate. Thus, daily the organization implements on average 45 apartments and houses in Spain and^[2] is one of key players in^[2].

In total for the first half of 2014 income of "bad" bank was 1 billion 696 million euros from which 74% fell to the share of financial assets, and the rest – on the real estate in Spain. The management of Sareb set the object to sell 11 thousand objects of the Spanish real estate in 2014. Considering that more than 8 thousand were sold for the first half a year, this plan can be exceeded.

"These indicators speak about noticeable economic recovery. It is noticeable both in financial market, and in the real estate market which is capable to attract both national, and foreign investors", - the representative of the "bad" Bank of Spain Jaime Echegoyen emphasized.

Notes