- October 27, 2011 at 5:34 am #56397
Spain’s Santander, the biggest bank in the eurozone by market capitalisation, is quietly trying to sell a €3bn ($4.1bn) package of thousands of repossessed homes and plots of land to foreign investors to clean up its balance sheet
If Santander sell this package at, say, 50% of book value. It is surely only a matter of time before we see the reduced price properties filtering through to the market?
- October 27, 2011 at 8:23 am #106234
That would certainly be true. Where Santander goes, the rest have to follow.
But the latest news is that the talks between Santander and foreign funds have come unstuck on price. Familiar story.
- October 29, 2011 at 8:36 am #106278
The banks in Spain are almost impossible to deal with. They will not accept a lower value than the figure they hold on their balance sheets.
The reason for this we can all speculate upon. My theory is these repossessed property portfolios are leveraged to the ECB at higher valuations than the real market in return for rescue financing.
- October 30, 2011 at 9:42 am #106286
In my mission to get nice neighbours in our block of flats i’m coming across this. Remember I said about the 26k flat, flat A, flat B at 34k, well flat C is with Banco Andalucia/Popular advertised on our local highstreet at….wait for it…… 138,000 euros!! Looking on a positive, if they value it as that it makes our mortgage of 108,000 euros much easier to cope with. ha ha….
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