Bankia is shopping a portfolio of assets connected to its property investment arm, as the bank looks to bolster its financial position.
The portfolio, which has been named Project Lake, includes assets valued at about €300 million, primarily in Madrid and Barcelona, according to coverage in Expansión.
The portfolio should draw interest from international investment funds which have gobbling up portfolios of Spanish property, especially deals with leased property and steady income.
Most of the property in the Bankia portfolio is controlled by Bankia Inmobiliario, the bank’s real estate arm. Bankia, Spain’s fourth largest bank, was nationalised in 2012, in the wake of the real estate market collapse. At the time, regulators labeled the bank’s €37 billion of property exposure as “problematic.”
Bankia was formed in 2010 by the merger of seven regional savings banks, which were dealing with bad loans tied to property.
Bankia acquired 100 per cent control of the property fund in March, after agreeing to buy out shareholders. Two-thirds of the fund is designated for rental homes with the rest offices and commercial property, Aura Real Estate reports.
About 78 per cent of the fund’s rental homes are occupied, the firm says.
Bankia is also marketing a portfolio called Project Amazon, which includes 300 loans backed by property and hotels.
Hamid says:
Hi,
It is possible to have more info on this?
Thanking you.
Peter says:
Does any one know —-? if these banks check and clear all debts and legal encumbrances to the property that they sell off, —- so that, any one buying a property from them could be certain of no legal come back, once the property was bought in your name. In other words the house isn’t going to bulldozed into a pile of rubble there after!?