Decisive moment for Sareb. The Asset Management Company from Banking Restructuring has activated a complex plan to get rid of the 27,716 million in real estate assets it has left, inherited from the old savings banks. Also known as a bad bank, it has the mandate to dissolve in 2027, so that during the next four years it must execute the sale of those properties or land that it still has in its portfolio.
To divest itself of assets, Sareb is acting on several fronts. The main line of business is the sale of homes that are still in stock. The entity has on balance almost 47,600 homes, according to the data at the end of December 31, 2022, of which 12,000 are offered to the general public. The rate of divestment is high: around 200 homes are sold per week at an average price of 97,000 euros. Last year, 8,500 were released and in 2021, 9,800. An important fact is that very often these are individual sales, since 92% of property buyers are individuals.
To sell the homes, the state company has just awarded the commercialization to Hipoges and Anticipa/Aliseda, which belongs to Blackstone. Interest rate hikes do not affect operations much, according to insiders, because assets continue to collect some discount and even gain visibility at times like now.
The pace of sales has allowed Sareb to reduce its volume of assets in a matter of a decade. Of the initial 50,781 million, 2022 closed with 27,716 million outstanding. In that time, moreover, the portfolio has changed radically. So, Sareb currently has 14,700 million, 60%, in real estate assets and 10,800 million, 40%, in loans. The rest of the portfolio, up to the aforementioned 27,716 million, corresponds to assets of the developer Árqura. When Sareb was created, 78% were toxic loans inherited from the old savings banks and barely 22% were housing.
The entity chaired by Javier Torres has activated, in parallel with the sale of properties, a plan to use a land exchange to build around 10,000 homes that will be allocated to social rent, that is to say, at higher prices reduced than those on the market. The project has been named Vienna and is one of the jewels in the crown of the entity in which the State holds a 51% stake. Right now there are about 100 plots available in thirteen autonomous communities; land also from the balance sheets of the old savings banks which, thanks to agreements with private developers, could be used to respond to the high demand for affordable rent.
Sareb sources indicate that the majority of these plots of land ready to build social rental housing are in the Valencian Community (26%), Catalonia (21%) and Castilla y León (16%). The entity has hired PwC to advise it on this project, which will be organized through a legal formula that will consist of a transfer of surface rights for a period suitable for the investment, which would exceed 50 years. The European Investment Bank (EIB) has shown interest in financing the promotions. When Sareb is finally dissolved, in 2027, the state body that inherits the Vienna plan would be responsible for completing it.
This project will serve to give way to the large amount of land that is still in Sareb’s portfolio. It has 32,367 units also inherited from the bank’s toxic assets, and social housing has become a good option to get them out. The public sector procurement law reduces the bureaucratic procedures of the state company, which can be presented to councils and autonomous administrations as a good ally for future lease developments at affordable prices.
With this plan, Sareb will become the largest housing developer in Spain, only behind the State Land Agency, Sepes, which aspires to develop 17,000 units. In Catalonia, the Generalitat has a project of 5,000 homes for the same destination, a figure similar to that of the Community of Madrid.
Sareb has also hired an advisor for the possible sale for nearly 900 million euros of its developer Árqura Homes, which has plans to build around 17,000 homes.
All these initiatives are activated at a time of change in Sareb. Frob has acquired a majority stake of 51% and, under the presidency of Torres, the group has reduced its board of directors and implemented a plan to adapt management salaries to the increasingly reduced size of the company
