| MADRID, July 12
MADRID, July 12 Spain's "bad bank" not only has
to sell the soured property loans and unwanted housing it took
on from the country's rescued lenders - it first has to find
A review of the 51 billion euros ($66 billion) of property
loans and buildings transferred to the state-run vehicle as part
of the industry clean-up has uncovered swathes of incomplete
records, including tens of thousands of missing addresses, three
sources familiar with the process said.
Keys to the wrong homes have also been among the challenges
faced by teams of lawyers and property experts hired to sift
through the assets and value them, two of the sources said.
The administrative muddle risks delaying the sale of assets
and ultimately how much money the bad bank, known as Sareb, is
able to salvage from a property crash that drove many of the
country's banks to require a European bailout.
Belen Romana, who chairs Sareb, said this week the bad bank
had sold just 700 properties by June 1. Its target is to sell
45,000 properties in five years and it is aiming for an annual
return on equity of 13 to 14 percent over its 15 year lifespan.
"The front office of Sareb looks like a merchant bank with
people in pin-striped suits and nice ties," said a real estate
broker familiar with the organisation, which is trying to seal
its first major sale of a portfolio of properties to investors.
"But behind the scenes ... you have an army of people in a
warehouse scanning and filing documents and combing through data
tapes. That's where the mess is."
Sareb declined to comment.
Sareb's roughly 107,000 properties and 90,000 loans come
from nine rescued lenders such as Bankia and
Barcelona-based Catalunya Banc, and these banks
still have the contract to manage the assets.
The loans are linked to another roughly 400,000 properties
or tracts of land used as collateral, two of the sources said,
adding that tens of thousands of those lacked proper addresses,
hindering the valuation process.
"We had some addresses with just '4C' registered as the
address, and with the name of a very common street in Spain,"
one of the sources said, speaking on condition of anonymity.
"You might also get 150 assets and addresses then realise
they are all one same apartment hotel," the source added.
The review of the collateral has already delayed the
valuation process by some weeks, the sources said. Thirteen
firms including law firms, property consultants and accountants,
led by Clifford Chance, are working on the process.
"There were instances with one of the banks involved where
people went to check out a property and were given the wrong
keys, or were told there was no-one living there and walked in
and there was," a third source familiar with the process said.
Binding bids for the sale of Sareb's first portfolio of
properties, of about 100 million euros, are due in mid-July, a
source close to that situation said.
U.S. funds Lone Star, Cerberus Capital Management and Apollo
Global Management are among those still in the running,
the source said.