Spain’s so-called “bad bank” has begun marketing the first batch of properties taken from troubled lenders at the end of 2012.
The bank known by the acronym Sareb told journalists this week that it was releasing the first 13,000 properties on its books into the market.
The properties are owned by Bankia, one of the four banks which were nationalised at the end of December. The stock is mainly completed new and resale properties although a few are foreclosed land plots and half finished projects. The majority of units are either city apartments or second homes in holiday resorts on Spain’s southern coast. Bankia’s property listings can be viewed on their property website or just send enquieries with detailled description of your search criterias to firstname.lastname@example.org .
Comment: It rhymes with clucking brambles
It has yet to be decided exactly who will manage or sell Sareb’s vast property portfolio. Furthermore, the bank has no idea what most of the properties are worth. A valuation expert quoted in the FT outlined the problem: “It took us a month to individually value 10,000 housing assets, and that was without going to visit the properties….Multiply that many times over to get to the scale of the challenge at Sareb.”
It is very difficult to sell anything when you don’t know the price or value of the item being sold. It’s even more difficult if you lack the background and skill sets for the job (property sales and management are being done in-house currently).
The is a huge role of the overseas property agents in making the project work. The sooner the banks realize this the quicker the Spanish property market can recover.
Source: Global edge