As published by SpanishREIT.com last November, SAREB is negotiating the sale of their Spanish REIT, Tempore Properties SOCIMI, S.A. According to market sources, the buyers could be TPG, Marathon or Ares.
Spain’s so-called bad bank, Sareb, was set up in 2012 to absorb over €50bn in property assets from nationalised financial institutions and banks that required medium-term financial aid. The entity posted a loss of €565M for 2017, its fifth consecutive annual loss, citing the sale of assets at a loss and the high costs of maintaining its portfolio. Sareb’s Executive Chairman, Jaime Echegoyen noted, “despite revenues being slightly down on last year, we have managed to increase our margins, sell more properties, and improve our year-end result”.
In December, Témpore carried out a €150 million share capital increase to acquire a total of 1,769 properties from SAREB, including 850 rental properties. The acquisition of this rental property portfolio – which forms part of a Right of First Offer (ROFO) agreement signed between SAREB and Témpore when the REIT was first created – allowed Témpore to double in size.
The Spanish REIT has thus expanded its portfolio with 12 new residential rental property developments, as well as properties within developments where the REIT already owns other assets. The new developments are located in towns across Andalusia, Asturias, the Balearic Islands, Castilla y León, Catalonia, Valencia, La Rioja and Murcia.
According to Nicolás Díaz Saldaña, CEO of the company, «Témpore is the third largest residential landlord in Spain, after Blackstone and the Azora Group, so it is logical that there are several investors studying the opportunity». The deadline for submitting offers has been set for the end of November.
According to the RICS valuation published on the 31st of December, 2018 by Savills and CBRE, the fund’s portfolio is valued at €339M.