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Press Releases

9 August 2013



 

3 July 2013

Spain’s Sareb shortlists investors for property sale

By Miles Johnson in Madrid and Ed Hammond in New York

Sareb, the Spanish state-organised “bad bank”, will this week select a shortlist of international investors for a landmark property sale that it hopes will pave the way for at least five other transactions this year.
Sareb, which was established late last year to take €90bn of real estate assets and soured loans off the books of Spain’s bailed out banks, will by Friday narrow down a list of 10 offers for a package of properties codenamed “Project Bull”, people close to the deal said.
The sale of a portfolio, composed of between 700-1,000 mostly costal residential property in the regions of Andalucia and Valencia, is being viewed by real estate investors as a watershed moment in Spain’s effort to purge the legacy of its decade-long property bubble. Unlike other European countries, most notably Ireland, Spain has been slow to begin the process of offloading distressed property.
“The significance of them bringing this first portfolio to market cannot be under estimated,” said one private equity investor focused on Spain, “if they get it away, it could really light the touchpaper”.
Among the investors that have lodged bids include Lone Star and Apollo, with Sareb, which has sold 550 of its near 50,000 properties in the first three months of this year, hoping to accelerate sales in at least five more similar deals by the end of 2013.
A notable aspect of the transaction, on which KPMG is advising Sareb, is that it will be the first time a special low-tax vehicle, known in its Spanish initials as a FAB, is provided to international investors buying assets from the bad bank.
The FAB structure, which is taxed at only 1 per cent, is likely to involve Sareb retaining a stake in the vehicle used for “Project Bull”, allowing it co-investing with any private equity fund that buys the assets.
The low tax rate provided by the Spanish government to encourage foreign investors to buy Sareb assets is also likely to be viewed as controversial in Spain, where many of the properties held by the state-run asset manager were repossessed by rescued banks from citizens in financial distress.
The portfolio, the size of which has been reduced since the start of the process, is expected to be valued at between €80m-€100m, depending on how the cash flows from the assets, capital structure of the FAB, and the amount of equity retained by Sareb. If valued at €100m this would represent a 50 per cent reduction on the registered value of the assets before they were transferred into Sareb.
Sareb’s strategy is to sell assets as soon as possible, in an attempt to provide a pricing floor for other investors and help restart a broader recovery in the housing market.

 

14 June 2013

Viva Espana!  Brits boost the Spanish property market

In an article titled “Return of the Cranes” published by OPP (Overseas Property Professional, May 2013) John Howell reports that new cranes have arrived at various site locations across Spain, and others that have been standing idle for years are now back in use – indicating that construction is commencing once again. Speaking to Des Rowson from DLR Properties he reports that “buyers are back, particularly at the lower end of the market. Prices are creeping up. We are finding it difficult to find good inventory at the right price.” These early indicators imply that there is increasing demand for investment in the country – which is driving developers to start and indeed re-start once forgotten projects.
Split by region, it is mainly the coastline areas such as Costa Blanca and the Costa del Sol that are seeing a resurgence in overseas investment as Brits migrate to Spain for holiday and retirement homes in the sunshine.
Overseas property investment in Spain is expected to increase, as in July new rules will come into effect that state non-EU nationals that spend more than €500,000 will get the automatic right to residency in the country in a bid to boost investment.

 

14 January 2013

 3 August 2012
This was our quote from October 15th 2011 which still applies today!

                                                                       Money

                                                                       thetimes.co.uk/money

The Times, Saturday October 15. 2011

 

Does Eurozone crisis mean time is right to buy a holiday home?  Mark Bridge reports.

Experts say that properties with tourist amenities but not purpose built offer good value in Spain – another hard hit economy, for example, Des Rowson of DLR Properties Overseas, says that a three bedroom houses in picturesque villages and small towns inland of Andalusian coast, with small expat communities start at 100,000 euros to 150,000 euros.

Meanwhile, Mr. Rowson says that while values in the ugliest investment developments have halved in the last three years, property in established holiday resorts have experienced nearer a 20% reduction and are looking nicely priced for lifestyle buyers – with one bedroom apartments from 65,000 Euros and villas from 130,000 euros in popular resorts on the Costa Blanca within range of Alicante and Murcia.

Tony Le Marchant, who already owns several holiday apartments in Spain, purchased between 1999 1nd 2008, believes that now is a “buyers market” and a good three to five year opportunity, but cautious that the rental market is limited and that it is difficult to sell.  Mr. Le Marchant is happy to sit tight as the properties were bought as part of his retirement planning.

Part of full article in Times Money.

 

28 July 2012

Spanish living costs are considerably lower than the UK according to the Post Office's Family Holiday Report 2012

27 july 2012

Spain has become the top of the list again for clients looking to purchase, buy before the taxes increase and while the euro is 1.2765 +£1 stg.

14 July 2012

Information from Spain seems more positive, our problem is we need more cheap propertgies to sell. Buyers are looking for properties under 75k.

Please contact us for further information.

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