Sareb continues to redefine its strategy. The state-controlled entity will cede land to developers with the aim of encouraging the construction of rental housing throughout Spain. In this sense, Sareb has already launched the process through two tenders to hire financial and legal-fiscal advisors, according to El Confidencial. 

The roadmap of the entity controlled by the Frob (Fund for Orderly Bank Restructuring) is to promote through private initiative between 10,000 and 15,000 build-to-rent units throughout Spain, offering a concession period of fifty years. At the end of the concession period, the homes will become part of the public housing stock.  

This new Sareb strategy is part of the change of direction carried out by the entity in recent months, following the takeover by the State in the first quarter of the year. The decision was in response to the change in the statistical consideration by Eurostat, which means that Sareb’s losses are now counted as public debt.

As part of Sareb’s new strategy, the so-called bad bank launched Project Gas last August. The entity launched real estate loans valued at 1,262 million euros on the market and gave until September to submit non-binding bids. 

Sareb’s deadline was to transfer this portfolio before the end of the year. The portfolio, worth 700 million euros, comes from assets transferred by savings banks with the bursting of the real estate bubble. The bank expected the bids to be discounted by an additional 60 to 70 per cent. 

The Gas Project covers some 3,000 loans with 11,000 residential assets as collateral. Of these, there are some 4,800 homes and the rest are garages, storage rooms and land. Most of these are already in the judicial claim phase or in insolvency proceedings. The provinces with the most assets for sale in this portfolio are Valencia (1,997), Almería (1,400), Barcelona (694), Tarragona (671) and Castellón (666).

Original Story: EJE Prime |News 
Photo: Sareb Linked In
Edition and translation: Prime Yield