September 26, 2013 / 6:01 PM / 5 years ago

Spain's Caixabank approves real estate unit sale to TPG

MADRID, Sept 26 (Reuters) - Spanish lender Caixabank on Thursday said it had approved the sale of its real estate unit Servihabitat to a joint venture between the bank and private equity fund Texas Pacific Group (TPG) for an initial price of 310 million euros ($418 million).

Foreign investors are moving in on the property management units of Spanish banks, hoping to break into a real estate market that has yet to yield many bargains even after a five year price slump.

The deal value could vary by 60 million euros either way depending on the amount of Caixabank real estate assets managed by the newly formed company over the next three years, Caixabank said in a statement.

Caixabank’s parent, financial group La Caixa, said it estimated it would pocket 317 million euros in capital gains from the deal.

$1 = 0.7418 euros Reporting By Sonya Dowsett; editing by David Evans

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