Sareb- Is the Spanish bad bank dumping Spains assets in the bin!
SAREB, the Spanish Bad bank President Belén Romana insists that the bad bank will not slash the prices of the banks portfolio and they intend to get the maximum benefit of each property. As well as indicating that in principal the bad bank… will not sell to private individuals but to investors who buy real estate packages.
The apartments of the bad banks will not be sold at a price that is less than the nationalized banks already have, but will be sold at a reasonable price, but to investors in lots. According to Ms. Romana only a third part of the portfolio is actually real estate, the rest are credits. From the 1st of January Sareb launches with a volume of 40.000millions of Euros from Banco Valencia, bankia, catalunya banc, and novagalicia banco- this amount goes to 55.000 millions Euro in February when they add the assets of bmn, caja3, y banco ceiss.
She also says that the nationalized banks will in the first phase at least be responsible for the disposal of their own assets under the control of Sareb.
In effect the whole bad bank issue is not going to really affect the Marbella marketplace, something we have been saying for some time, there are a few developments locally which are owned by Bankia & Caja Madrid who have stopped the sales pending the inception of Sareb, and Caixa Catalunya have a large portfolio of individual repossessions which we think will be back to business as normal from mid January…
Many of our clients have been waiting and holding back for news of what will happen, convinced that the whole of Spain would end up in the hands of the Bad bank!. Not so, many banks will survive by mergers, closures and the big banks such as Santander are already pulling ahead.
Owners in Marbella are taking a bashing and now start to understand that the only way out is the PRICE, and if they want to sell the price must be right!
Prices are lower than they have been in 10 years and at this point properties are being bought for less than replacement value and in may cases for a lot less than is already written in the title deeds, which shows the real loss by the vendors. We don’t see the prices dropping much more they are already on the floor!
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