April 12, 2018 / 8:30 AM / 3 months ago

Sabadell in talks to sell property portfolios worth 7.5 billion euros - source

MADRID, April 12 (Reuters) - Spain’s Banco Sabadell is in talks to sell two toxic real estate asset portfolios worth around 7.5 billion euros ($9.27 billion), a source with knowledge of the deal said on Thursday.

Although Spain’s property market is enjoying a rebound, lenders are still working hard to sell real estate debt that soured during a prolonged crisis, and often offer discounts of around 60 percent on the face value of the portfolios.

One of the deals is to sell 5 billion euros in non-performing real estate assets and the other would sell 2.5 billion euros of mostly foreclosed assets.

Both negotiations are at an early stage, the source said, adding investment bank Alantra was advising Sabadell.

Sabadell and Alantra declined to comment on the news, which was first reported by online newspaper Vozpopuli.

Sabadell had already initiated a separate process of selling 3.3 billion in two property portfolios in March.

As part of its strategic plan, Sabadell aims to sell more than 6 billion euros of bad real estate assets by 2020 after cutting them by 3.4 billion euros in 2017 to 15.2 billion euros.

$1 = 0.8087 euros Reporting By Jesús Aguado Editing by Isla Binnie and Julien Toyer

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