Re: Re: Press articles about the Spanish property situation


Vulture funds descend on Madrid

But now fresh bank reforms will force Spain’s banks, particularly those getting public help, to set aside repossessed property by year-end for a fire-sale, while provisions to counter 137 billion euros ($169 billion) of potential losses should make it easier to sell assets at steep discounts.

Some believe that is already having a knock-on effect on prices, with another banker saying funds were “smelling blood”.

“The price at which banks would be willing to sell and investors willing to buy has narrowed a lot. That is a fact,” said a Madrid-based lawyer who has advised savings banks, or cajas, on restructuring.


Fortress Investment Group, Oak Hill, Corsair Capital, TPG, and Apollo are among many other firms looking at Spain’s banking sector, bankers said, with U.S. investment banks also in the mix.

Private equity groups Lone Star and Blackstone, which have bought portfolios of distressed property loans from Britain’s bailed out Royal Bank of Scotland and Lloyds, could also look at Spain, industry sources said.