US Funds Target Cajamar Property Unit

The competition to buy Cajamar’s property management business is heating up, thanks to interest from international funds.

U.S.-based mega funds Apollo Global Management and Cerberus Capital Management are bidding for the bank’s unit, which is valued at more than €200 million, according to media reports.

Spanish banks have been shedding their property management units as they try to raise cash in the face of upcoming stress test reviews. The property management business is seen as profitable, even in the depressed market, and the most marketable aspect of the banks’ property business.

BBVA and Sabadell have already sold their property management units.

Both Apollo and Cerberus are active players on the Spanish property market. Bankia sold its property management arm to Cerberus last year while Apollo bought an 85 per cent stake in Altamira, Santandar’s property management business, earlier this year.

The sale of the Cajamar unit could be announced as early as this week, a source told Reuters.

Meanwhile, a fund controlled by U.S. investor George Soros is joining the bidding for Catalunya Banc’s €6.5 billion portfolio of non-performing mortgage loans, Property Investor Europe reports.