October 24, 2018 / 12:37 PM / 24 days ago

Sabadell plans further cut in Spanish real estate business - source

MADRID, Oct 24 (Reuters) - Spain’s Banco Sabadell has mandated investment bank Alantra to sell its real estate management unit Solvia Servicios Inmobiliarios, a source with knowledge of the matter said on Wednesday.

“The process is ongoing and binding offers have to be submitted before the end of October,” the source said, adding that the process was at an advanced stage.

Spain’s property market is rebounding after a 2008 crash but lenders are still working to sell real estate portfolios that soured during the financial crisis, urged by the European Central Bank to remove non-performing assets from their balance sheets.

The source did not give details of the sale price for Solvia Servicios Inmobiliarios, which does not own properties but manages 30 billion euros ($34.2 billion) in assets from third parties.

Both Banco Sabadell and Alantra declined to comment on the news, which originally appeared in financial newspaper Expansion.

Separately, Sabadell has given Rothschild a mandate to sell the real estate development promoter Solvia Desarrollos Inmobiliarios, a new subsidiary carved out from Solvia. The sale process is at an early stage.

“The portfolio to be included would be mainly land with a gross value of around 1 billion euros”, the source said, confirming an earlier report on financial website Vozpopuli.

Rothschild did not respond to a request for comment.

Sabadell agreed in July to transfer real estate assets with a gross value of more than 12 billion euros to Cerberus and Deutsche Bank, initially leaving out Solvia Servicios Inmobiliarios.

However, its chief executive officer Jaime Guardiola said then it would consider selling the unit.

Another source close to the matter said Cerberus was among the candidates to take on the management of Solvia Servicios Inmobiliarios.

Cerberus did not reply to a request for comment. ($1 = 0.8778 euros) (Reporting By Jesús Aguado; editing by Julien Toyer, Paul Day and Kirsten Donovan)

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