understanding sareb asset mix and its deal making process · understanding sareb asset mix and its...
TRANSCRIPT
Understanding Sareb asset mix and its deal
making process
May 28, 2014
Sareb: Identity and mission
Sareb is the Spanish Management
Company for Assets arising from the
Banking Sector Restructuring
55% private owned
Its mission is the management and
divestment of its portfolio before
November 2027
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WIP6%
Land33%
Real Estate Units61%
Our portfolio
Loans78%
REO`s22%
€50 billion portfolio
Collaterals ready for sale
71 %
No Collaterals 4%
Land Collaterals
10%
Other
15%
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Portfolio breakdown (transferred assets >€50bn)
Real Estate Owned (% of euro million )
0,4%
0,5%
0,6%
1,4%
1,6% 2,0%
2,9%
3 %
3,1%
3,6%
4,9%
5,3%
5,6%
12,3%
15 %
16,3%
21,4%
0,1% Ceuta and Melilla
Financial assets (% )
0,6%
1%
0,1%
1%
2% 1%
0,4%
2 %
5%
3%
3%
5%
5%
8%
18%
26%
18%
0 % Ceuta and Melilla
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Portfolio management
Assets for sale. Based upon:
• Liquidity, opportunity, profitability
Sales and divestment:
Sale Channels:
• Wholesale
• Direct Sale
• Retail
Analysis, identification and
classification of all the assets in
the balance sheet:
– Due Diligence
Management of the assets on
balance sheet: From “warehouse”
to “factory”
• Asset manager
• Focus on value creation
• New business lines
Marking of every asset (i) for sale
(ii) for rent (iii) other value
enhancing strategy
Value maximizationNew business lines
New business lines
Land development
Advance planning
Development
Work in progress
New Capex
Rental business
6,000 rented
Loan recovery
Acceleration
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Strategy: wholesale - direct sale. Agility and Flexibility.
Portfolio
Construction
Sale
Strategy
Direct Sale:
Sareb Teams
External
Advisors
Selection
of
investors
Sale Process• NDA
• Non -binding
and/or
Binding offers
• Election of
final bidders
• Negotiation of
the SPA
• Closing of the
dealFrom Sareb
Database
Sareb works with tight calendars: from 2 weeks to 5 months
Number of investors invited depends on the project: from 5 to 250
All information available is shared through the VDR and new info disclosed as soon as
known
Flexibility to tailor-made portfolios
Full focus on investors’
needs and preferences
FAB
SOCIMIS
For Sareb only
Favorable tax treatment
- Corporate tax rate 1%
- Non-resident investors exempt
for withholding tax
Special Purpose Vehicles
80% of the assets and revenues from rental
Minimum equity €5m
Listed in a public market
Performance in 2013
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BULL Nearly 1,000 real estate assets, first FAB
TEIDE Nearly 2,000 real estate assets, mainly residential, across Spain
CORONA Four office buildings in Madrid
HARVEST More than 20 rural properties across Spain
CROSSOVER Portfolio of plots of land
BERMUDAS Loans to companies listed in the Madrid SE
PARAMOUNT Exclusive homes located in prime tourist areas and urban centers
Intense commercial activity over the second half
of 2013
Performance in 2013
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Financial Report (in € Bn)
Business performance in 2013
Key Figures
Financial and Real Estate Asset Sales 1.584
Financial Revenue from Loans and Credits 1.209
Financial Interest 766
Repayments of Loans 443
Rental Revenue 68
Revenue 2.861Cost of Asset Sales -1.265
General and Admistration Cost -401
EBITDA 1.195Depreciation -117
Financial Cost -1.222
Income before Impairment -144
Impairment -259
Pre-Tax Income -404
Taxes 142
Net Income -261
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2014: New challenges
Wholesale Rental housing
Hotels
Other portfolios: loans and/or REO (Klauss, Dorian…)
100% owned by Sareb
Analyzing different sale alternatives: majority stake, minority stake, keep the
FAB in Sareb’s balance sheet
Large number of assets included in the portfolio
Minimum price set in each asset.
Investors tailor made their own portfolio. The larger the number of assets
included the higher the price discount.
Sale of loans or assets through fast processes
Investment from €10mn to €50mn
www.inmuebles-sareb.es Non residential asset (400 units)
More emphasis on retail channel
New portfolios
FAB Corona
“Multi-option
portfolios”
Direct Sale
Retail
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Highlights
Fully operational through all the sale channels. 220 employees
Numerous large transactions already closed: Bull, Abacus, Bermudas,
Klauss, Dorian…
Large number of commercial initiatives in the pipeline.
Flexibility:
Tailor-made portfolios for potential investors can be constructed (size,
assets…)
Several SPVs can be used: tax breaks for shareholders
Business objectives for 2014
Challenges for 2014
Objectives
Optimisation of the balance sheet
Land development
Developing projects under construction
Industrial approach to rental business
Acceleration in recoveries
Driving existing distribution channels and creating new ones
15% increase in retail sales
New servicing agreements: take advantage of the oportunity
Reducing debt by €3,000 M in 2014 (+50%)
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