Rob Horgan
MADRID-based lender Bankia SA is selling off €4.8 billion worth of Spanish residential and commercial property as international investment rallies.
Spain’s fourth largest bank wants to sell the entire portfolio of €3.3 billion of residential properties, €1.1 billion of commercial units and €400 million of land in one mega deal.
But advisor on the deal, Credit Suisse, says it may be forced to divide it up to facilitate a sale.
Patricio Palomar of realtor CBRE Group Inc. said: “The expection of recovery in the property sector is so high compared with neighboring countries, that there are many investors searching for all kinds of real estate products.”
Investment in Spanish property shot up from €4.9 billion in 2013 to a massive €17.8 billion last year according to consultancy firm Irea.
With house prices in Spain registering their first increase since 2007 last year a the signs are positive.
And as Spain’s risk perception falls, investors are looking to snap up bargains.
