Sareb, the former bad bank, is a key piece in the Government’s housing policy. With this objective, the company reported today, during its results presentation, that it sold 10,500 homes considered affordable during 2023. These are operations below market prices; In fact, the average price of these sales was 90,000 euros. Most of them were sold in Catalonia, the Valencian Community and Andalusia, since they are properties from the old savings banks, and 90% were purchased by individuals. The rest, by public administrations.
“It is a fact that makes us proud because it has consolidated the company as a major player in the residential market in Spain and because, with these sales, Sareb makes homes available to society in affordable conditions,” said the president of Sareb, Javier Torres.
The company in charge of managing the assets from the last financial crisis managed to increase its income by 16% last year, up to 2,748 million. The record sale of assets explains these results. In 2023, Sareb managed to sell 36,690 units, including old and new properties, works in progress and land.
One of Sareb’s fastest growing areas is the Árqura Homes developer, created ad hoc to build and sell properties. In 2023, it doubled housing deliveries, with 1,620 sales, which allowed it to increase its income to 394 million. The company highlights that its company has become “one of the great promoters in the country.”
Sareb, however, continues to have problems inherited from the financial crisis. Its managers admit that “it will be impossible to sell the entire portfolio of assets” it has in 2027, which is when the company’s mandate ends. Another problem is debt, which remains high. It stands at 29,413 million at the end of 2023, since last year it amortized 1,068 million. Although it has been reduced by 42%, from the initial 50,781 million, the situation remains complex.
The company’s directors have also recognized that a part of the negative equity, some 14.6 billion, “will never be returned.” It is practically half the current debt. The holders of these bonds are the main banks, such as Santander, CaixaBank and BBVA. The Public Treasury will have to decide in due course, in 2027, what to do with this debt recorded as public.
Another problem for Sareb is the squatters. At the end of last year, the company had 3,500 properties with illegal tenants.
One of Sareb’s most important projects is called Vienna. It consists of the transfer of public land to developers for the construction of housing for social rent, that is, below market prices. The company transfers these lands for up to 80 years at zero cost. The developers build and rent the homes with a maximum rent 20% lower than the market rate. At the end of the agreement, the homes revert to the public administration.
The Government plans to build 10,000 affordable rental homes in 30 provinces. In this first phase, 3,500 are planned to be built, with an estimated investment of 400 million. The president of Sareb, Javier Torres, has explained that in 2023 he held a round with investors and detected a business spirit in the project. The lands are located, in this first phase, in Catalonia, the Valencian Community, the Balearic Islands, Murcia, Andalusia, Castilla-La Mancha, Castilla y León and Asturias. At this moment the Ministries of Economy and Housing are finalizing the launch of the initiative.
At the end of 2023, Sareb lost 2,198 million due, mainly, to the difference between the book value of the assets in 2012 and their market sale price. The composition of the company’s portfolio has changed radically in its eleven years of life. As of December 31, it had 38% loans and 62% real estate.
