According to market sources, GSO (subsidiary of Blackstone) and Centerbridge prepare a joint bid to buy Grupo Santander’s global HQ in Madrid which could reach €3.1 billion.
Investors Glenn Maud and Derek Quinlan bought the headquarters of the Spanish bank in 2007 for €1.9 billion with financing from a group of banks led by RBS. Shortly after the acquisition, financial difficulties led to a bankruptcy filing. Key in this acquisition was the 40 year lease contract backed by the Santander Group, which, led by Ana Botín, achieved an attributable profit of €6.619 million (+7%) in 2017, with a market capitalization of €88.4 billion.
The potential buyers, who are already creditors of Marme, having bought part of the debt from the former lenders are in talks with Deutsche Bank to secure financing. Marme’s current creditors (which include RBS, ING and CaixaBank) expect the final offer to surpass the €3,1 billion mark, in order to recover 100% of the debt granted with their interest. Santander has a pre-emption right to buy back its headquarters in case it does not want to continue as a tenant.