Spain's "bad bank" sells property portfolio to H.I.G. Capital

MADRID Tue Aug 6, 2013 1:46pm EDT

MADRID Aug 6 (Reuters) - Spain's "bad bank" Sareb said it closed its first property portfolio deal, with investment firm H.I.G. Capital taking a 51 percent stake in a package of close to 1,000 homes around Spain, known as Project Bull.

Sareb said the deal priced the portfolio at 100 million euros ($133.10 million).

Sareb said in a statement it retained a 49 percent share.

Sareb is an asset management company set up by the Spanish government as part of a multi-billion-euro rescue of the country's banks, to take on soured real estate assets and property related loans.

The properties in the Project Bull portfolio, which include homes in Madrid, Andalusia, Catalonia, the Canary Islands and other parts of Spain, were transferred to a Bank Asset Fund, which provides a favourable tax regime to investors, Sareb said.

Sareb said it received other bids for the portfolio, but did not detail them.

Sareb, which was set up late last year, recently reported that as of mid-July it had sold 1,800 property related assets - including real estate and loans to builders - and registered revenue of 900 million euros.

The bad bank's objective is to make 1.5 billion euros in sales this year.

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