BBVA has closed the transfer of its real estate business in Spain to Cerberus Capital Management, an operation announced on November 29, and whose final price will be subject to foreclosed properties that are finally contributed, as reported by the entity to the National Securities Market Commission (CNMV).
Specific, the transaction has involved the sale of 80% of the share capital of the company Divarian Property to an entity managed by Cerberus. BBVA and Cerberus then created this joint venture to which they transferred their real estate business.
The group has informed that the final price to be paid by Cerberus will be adjusted according to the REOs that are finally contributed, Although the announcement of the operation almost a year ago estimated that the price would be around 4,000 million eurosalthough this forecast could vary due to the fact that some of the assets that were contemplated were sold to third parties and that the transmission of others would be pending authorization from the Deposit Guarantee Fund.
The entity estimates that the operation will not have a significant effect on the group's attributable profit or on the Common Equity Tier 1 (fully loaded) capital ratio.
Likewise, BBVA forecasts that in 2018 the losses of the Non Core Real Estate business area will be around 80% lower than in 2017, when they reached 501 million euros. As of 2019, BBVA expects that the contribution of this area to the results of the group will not be relevant.
In the last two years, BBVA has been one of the most active financial institutions in this type of operations. Along with the agreement closed this Wednesday, other milestones have been the sale of a portfolio of about 3,500 properties, known in the market as the 'Buffalo' project; the placement of another portfolio of 14 office buildings, called the 'Boston' project, and the sale of Torre Puig, one of the largest real estate operations in Barcelona.
Also worth mentioning is the agreement with Metrovacesa Suelo y Promoción, by which he transferred 108 lands for the construction of houses; the sale of the 'Jaipur' project, a portfolio of loans from the promoter segment; the placement of 27% of its stake in Metrovacesa in the flotation of this company; the signing of the 'Sintra' project, one of the largest portfolios of loans to the promoter sector placed in the Spanish market; the sale of its 25.24% stake in Testa and, finally, the sale of the Gran Vía 1 building in Bilbao.