Private equity investors drawn to Spain
Private equity investors are increasingly being drawn to Spanish property - a good sign for the market. Following the sale of Sareb's Bull portfolio, Goldman Sachs private equity and Azora have now bought 3,000 residential flats from the regional government of Madrid. The sale totaled €201 million (£171 approximately) and signals the highest level of activity since the market crashed.
The portfolio is comprised primarily of flats in Madrid that are part of a scheme to give homes to people below 35 with below-average incomes. Known as the Young Plan, residents would later have the right to buy a flat. However, the Madrid regional government has one of the largest budget deficits out of the autonomous communities and will use proceeds from the sale for public spending. Currently, it isn't known how Goldman Sach and Azora will split the portfolio.
This recent sale is the latest involving private equity investors and Madrid city has recently sold a package of 1,860 rent-controlled properties to Blackstone for €125.5 million (£107 million approximately). HIG Capital also procured project Bull in the first high-profile sale for Sareb. The portfolio included a 51 per cent stake through the low-tax financial vehicle known as the Bank Asset Fund, giving HIG 939 homes, 750 car parks, storage units and one retail unit.
The assets transacted in the deal are valued at €100 million (£86 million approximately) and it is believed the sale will act as a catalyst for further purchases. Belén Romana, president of Sareb, has celebrated the interest that the Bull portfolio attracted so far. "The quality of the bids submitted shows the confidence that investors have in Sareb and the Spanish housing market recovery," he said.
Bayside Capital closed the deal on behalf of HIG and said it was delighted to do so. Chris Zlatarev from the company said: "This operation demonstrates our commitment to invest in Spain HIG and develop our business in real estate and debt."
The portfolio is comprised primarily of flats in Madrid that are part of a scheme to give homes to people below 35 with below-average incomes. Known as the Young Plan, residents would later have the right to buy a flat. However, the Madrid regional government has one of the largest budget deficits out of the autonomous communities and will use proceeds from the sale for public spending. Currently, it isn't known how Goldman Sach and Azora will split the portfolio.
This recent sale is the latest involving private equity investors and Madrid city has recently sold a package of 1,860 rent-controlled properties to Blackstone for €125.5 million (£107 million approximately). HIG Capital also procured project Bull in the first high-profile sale for Sareb. The portfolio included a 51 per cent stake through the low-tax financial vehicle known as the Bank Asset Fund, giving HIG 939 homes, 750 car parks, storage units and one retail unit.
The assets transacted in the deal are valued at €100 million (£86 million approximately) and it is believed the sale will act as a catalyst for further purchases. Belén Romana, president of Sareb, has celebrated the interest that the Bull portfolio attracted so far. "The quality of the bids submitted shows the confidence that investors have in Sareb and the Spanish housing market recovery," he said.
Bayside Capital closed the deal on behalf of HIG and said it was delighted to do so. Chris Zlatarev from the company said: "This operation demonstrates our commitment to invest in Spain HIG and develop our business in real estate and debt."
PUBLISHED : 21ST AUGUST 2013
