As part of its strategy to monetize real estate assets, Banco Sabadell has sold 100% of the bonds issued by an ABS vehicle whose underlying is a portfolio of 953 real estate properties to a consortium of international institutional investors.
The operation is carried out via an asset portfolio of €88.9 million, with the resulting transfer of risk of this portfolio arising from the acquisition of Banco CAM. The special characteristics of the transaction, which was arranged in the form of a sale of bonds, enabled the bank to maximize value compared with directly selling that same portfolio.
According to Miguel Montes, General Manager of Banco Sabadell: "This transaction exemplifies Banco Sabadell's capacity to transfer real estate risk off the balance sheet through structured operations, and it is a clear sign that international investors are extremely interested in this type of transaction; consequently, it provides a good base for future deals".
The agreement, completed following a competitive process, will enable Banco Sabadell to continue to manage the portfolio and to market the transferred properties via Solvia, the group's real estate company.
The portfolio comprises second-hand assets, of which approximately 90% are homes and the remainder are commercial premises, parking spaces and storage facilities. The assets are located throughout the Mediterranean Arc, though concentrated in Valencia, and also in the Madrid region.
This transaction is in line with the group's strategy to reduce real estate exposure. It was coordinated by a team specialized in portfolio sales and structured operations, which is part of the bank's Real Estate Investment Division.
Source: Banco Sabadell
