Tag Archives: Bad Bank

One of Spain’s biggest developers files for bankrupcy

Reyal Urbis, one of Spain’s biggest developers, has filed for bankrupcy, with a €3,600 M debt (representing Spain’s second biggest bankrupcy ever).

It will leave the so-called “Bad Bank”, known as Sareb, with a hole of €350 M.

Its desperate situation has lead the giant building firm to put on the market as discounted prices some of its main assets (the top 20 are valued collectively at approx. €600 M). These include the ABC Serrano commercial complex, which comprises three emblematic buidlings dating from 1896, 1926 y 1932, located in one of the most exclusive streets in Madrid’s centre.

Another extremely attractive investment opportunity is the 8,500m2 shopping centre known as Castellana 200, due to open its doors this April.

Links to Spanish articles:

http://www.eleconomista.es/empresas-finanzas/noticias/4613859/02/13/Reyal-Urbis-solicita-el-concurso-de-acreedores-su-deuda-asciende-a-3600-millones-.html

http://www.eleconomista.es/empresas-finanzas/noticias/4617290/02/13/Las-joyas-de-Rafael-Santamaria-centros-comerciales-hoteles-y-complejos-de-oficinas.html

 

Spain to offer residency to anyone who can buy as house for more than 160,000€

It says it all in the title. Mariano Rajoy is considering offer non-resident property buyers the chance to have citizenship if they can afford the purchase of a 130,000€ property.

Spain has about 700,000 unsold properties on the market and this appears to be a move to  help shift some of the housing stock and to get some high worth individuals onto the books and into Spain.  its also a move to try and lower the “bad debt” current considered to be at about 10% of total loans.

This a isn’t a first, in Ireland you can get residency with a 400,000€ purchase and in Portugal, 500,000€.

 

Property Works Mallorca 2012

Gathering in Palma de Mallorca to raise awareness of the consequences of bank eviction.

A demostration has taken place in Palma de Mallorca in order to show solidarity to people who, they claim, are victims of the “banking and estate agency violence”. The demostration was organised after it made front page news that a man in Granada had commited suicide on Thursday hours before he was due for eviction. The organising group says this suicide was not a “one off” and that many  hundreds of lives are being broken by abusive banking legislation.

 

 

 

The Bad Bank – coming to Spain soon.

The Spanish government is creating a “Bad Bank”, or “Banco Malo”, in which to put all the toxic property assets.

The idea is to progress from the current building crisis by drawing a line under the current woes in the construction sector.

Basically, the Government of Spain issues debt and buys from Spanish banks all their bad investments, which are accumulated in a “bad bank”.

Presumably, the acquisition takes place at a significant discount relative to the actual value, so that in the long-term, taxpayers could even win when the assets are re-sold.

At Property Works, we beleive that this measure, although not without its risks, could be of some help to help the Spanish economy overcome the deflation of its recent property bubble.

Time will tell…