Banco Santander, the world’s ninth largest bank by revenue, has reached an agreement to purchase its sprawling headquarters.
In January, the Spanish courts determined that the London based Reuben brothers had won a tender for the site with a cash bid of €283m. The enterprise value of the global headquarters, which includes debt, was reported to be around €3bn.
Banco Santander had reportedly offered to pay €232m to buy back the site and was set to appeal the court’s decision to sell to the Reubens’ Sorlinda Investment vehicle. But the bank has now reached an agreement with Sorlinda and Marme to reacquire the site. The current rent is in the region of €120 million per annum updated annually.
In 2008, Santander sold its global HQ for 1.9 billion euros to Marme Inversiones 2007 SAL, a special purpose vehicle incorporated by investors Glenn Maud and Derek Quinlan. These financiers, who had also acquired Citi’s headquarters in London, financed the purchase with a syndicated loan – the main lender being RBS.
In the midst of the great recession, on the expiration of the loans in September 2013, Marme defaulted on their repayments and entered liquidation two years later. The financiers, including RBS, Caixabank, ING, Nordbank and BayernLB, have managed to recover their money with interest thanks to the sale.