Santander Sells €10 Billion worth of Spanish Property

Santander Sells €10 Billion worth of Spanish Property

Spanish Property is for sale contact us for the best bargins

The Spanish real estate industry has been moving at a brisk pace for the past 24 months at the very least, as the residential housing market in particular has been boosted by the activity – and cash – of private buyers.

For the longest time though, following the crash of 2008, the biggest portfolio holders in Spain have been the banks – forced to clean up homes and offices left behind by people and companies defaulting on their mortgages following the credit crunch.

Banco Popular in particular became the largest landlord in Spain in a matter of months, becoming the owner of around €30 billion worth of real estate at pre-crash prices.

The financial troubles of Banco Popular are well-known however, and the bank was recently bailed out by another Spanish bank, Santander. This week saw the anticipated – but still surprising – move of Santander selling all of their property for €10 billion to the Blackstone Investor group out of the US.

This property portfolio includes hundreds of houses, apartments, and hotels, along with plenty of land. Analysts believe that the property has lost around two-thirds of its value since 2008.

Now the property is in the hands of the proactive and committed Blackstone Group, who have long-since seen Spanish property as a profitable, long-term investment. People in many quarters are celebrating the sale as it is another indication that people are becoming more confident and enthusiastic about Spanish property.

As well as in increase in transactions for resale properties, residential construction across Spain is increasing, with much of the activity driven by foreign investment.

Reuters released data that showed around a third of the €22 billion invested directly in Spain in 2015 went to construction and realestate, and it’s expected that this figure will increase for 2016 and 2017 following the release of official data.

Data Shows Spain Made €60 billion From Tourists Last Year

Data Shows Spain Made €60 billion From Tourists Last Year

Spain broke all tourism records in Europe 

The latest data from the UN World Tourism Organisation (UNWTO) shows that tourism provided the Spanish economy with €60 billion across last year – which is more than for any other country except for the USA.

The difference is that Spain’s tourism numbers are growing, while America’s are contracting following the election of President Donald Trump. Not only is Spain’s tourism industry growing, but it’s growing at a rate higher than any other leading destination.

The figures from the UNWTO show that the US received €173 billion from tourism in 2016, which makes it the clear winner. Spain came in second, followed by Thailand and China for tourism revenue.

The UK – which came in third place in 2015 – dropped to seventh. The country made €29 billion from tourism, which is the lowest figure for some time. Experts believe that the Brexit – and the effects of the decision – are to blame for this drastic drop.

An interesting figure is that of France, which came in fifth place for tourism revenue in the world in 2016, even though UNTWO figures suggest the country received the highest overall number of visitors. This would suggest that people visiting France do so fleetingly; whether it’s because they are passing through the country on their way to other neighbouring countries, or just because they stay for a few days.

France topped the charts of overall visitor numbers thanks to some 82.6 million visitors across 2016. The US came in second with 75.61 million tourists, followed by Spain with 75.56 million visitors.

What is interesting is how quickly change is happening and the directions of the change. American tourism dropped 3% between 2015 and 2016, and continues to fall across 2017. France saw a 2% drop between 2015 and 2016, and it’s expected the fall will be greater this year following recent terrorism threats.

Spain, however, saw an increase in visitor numbers of 10% across 2016, and all the signs are there for an even stronger 2017; which could leave Spain clinching the top spot by the end of the year.

US Investment Fund Grabs €1.1 Billion Spanish Property Portfolio

 US Investment Fund Grabs €1.1 Billion Spanish Property Portfolio

The love of investing in Spanish property shows no signs of slowing down. Just recently the US private equity firm Bain Capital purchased a loan and real estate portfolio from three Spanish banks for the sum of €1.1 billion.

Spain looks an amazing investment hub for the next 7 or 8 years

Spanish banks stepped forward during the years following the recession and claimed ownership of thousands of distressed properties. Most of these banks have since gone on to try and sell the properties, even offering them at discounted prices to private investors who want to grab a bargain.

Bain Capital’s decision to purchase this portfolio show just how attractive Spanish real estate is to foreign investors. It’s impossible to know the exact details of the purchase but Reuters are reporting that around €220 of the €1.1 billion of the residential and commercial property all came from one Spanish bank.

The rest of the money went towards purchasing bad loans at face value from Spanish banks Sabadell and Cajamar. It’s believed that most of these loans were offered by the banks to small property firms that were going through bankruptcy. Bain said that these firms are backed by real estate assets and they outlined their belief that these property assets would be enough to recoup their money thanks to the rising property prices in Spain.

As Spain is currently experiencing historically low interest rates there’s never been a better time for this kind of investment from a firm that has the power to carry the burdens. After the recession of 2008 prices in the real estate market slumped by as much as 40%. While property prices are on the increase many properties are still severely undervalued and present a great investment.

The rental yields from commercial and residential property rose to 6.1% in the second quarter of 2016 in Spain, which works out at about five times the return on a 10-year, government backed bond. As such owning property in Spain has become quite the attractive bet across the entire spectrum of investment.

One of the managing directors for Bain Capital Credit, Fabio Longo, said that they see the potential of investing in the Iberian Peninsula, especially in real estate and non-performing loans.