Spanish bank Santander has hired CB Richard Ellis to manage the sale process of EUR 3 bn in property assets representing around 90% of the portfolio owned by its Banif property fund, Spanish newspaper Expansion reported, citing a letter sent by Santander to the fund's shareholders. In February the bank requested a freeze on payouts from Banif, Spain's largest real estate fund, after investors sought to withdraw 80% of the vehicle's capital.
Spanish bank Santander has hired CB Richard Ellis to manage the sale process of EUR 3 bn in property assets representing around 90% of the portfolio owned by its Banif property fund, Spanish newspaper Expansion reported, citing a letter sent by Santander to the fund's shareholders. In February the bank requested a freeze on payouts from Banif, Spain's largest real estate fund, after investors sought to withdraw 80% of the vehicle's capital.
Santander has asked the Spanish stock market regulator to allow it to suspend full reimbursements from the fund for a period of two years. During this time, the fund will ' start an orderly programme of disposals', the bank added.
The fund, which was 62%-invested in residential properties, has lost about 15% of its value in the fourth quarter of last year as a result of falling property values. It currently owns 7,195 apartments, 25 office buildings and five shopping centres and other commercial assets.
The bank is being advised by Clifford Chance for the legal matters.
In March, Banif sold the an office building on Paseo de la Castellana in Madrid to the Spanish public insurance group Consorcio de Compensación de Seguros for around EUR 70 mln. The crown jewel of Banif's portfolio is the Plenilunio shopping centre in Madrid, which it bought from Riofisa in 2006 for EUR 275 mln.
