BANCO POPULAR plans to sell its property management business to two US investment firms in a bid to strengthen its capital.

The deal, between the bank, Kennedy Wilson, and Varde Partners, is said to be worth €800 million.

It would see the bank raise funds by selling the management platform while keeping the properties on its books.

Popular would also keep a minority stake in the business, which services bad loans and repossessed property.

The property management business, Aliseda, manages around €15.8 billion of properties and loans, according to Reuters.

The deal is the second the US investors have brokered together, the first involving the purchase of a similar business from Spain’s nationalised Catalunya Bank.

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