Spanish banking group BBVA has agreed to divest 80% of its domestic real estate assets to American investment firm Cerberus in a deal worth around €4bn.
The real estate business comprises nearly 78,000 property assets valued at about €13bn. Bulk of the business’ assets are located in Catalonia, Madrid and Valencia. The entire business is valued at around €5bn.
Go deeper with GlobalData
BBVA CEO Carlos Torres Vila said: “This transaction is extremely important, because it significantly reduces our exposure to a non core business, and it allows us to strengthen our transformation process.”
The deal is expected to be completed in the second half of 2018, subject to regulatory approvals. The remaining real estate portfolio retained by BBVA would be serviced by Cerberus subsidiary Haya Real Estate.
BBVA said that the transaction will not significantly impact its profits but would have a slight positive impact on its CET1 ratio. The bank also said that post deal completion, it would have the lowest relative real estate exposure among major Spanish financial institutions.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
