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What is Sareb

Sareb is a private entity and a key element to the restructuring of the Spanish financial sector.

The Management Company for Assets Arising from the Banking Sector Reorganisation (Sareb) is a private entity that was created in November 2012, in order to help clean up the Spanish financial sector, and more specifically the institutions that have been experiencing issues as a result of excessive exposure to the real estate sector.

The creation of the company was conceived via the Memorandum of Understanding (MoU) which the Spanish government signed in July 2012 with its European partners, in order to receive financial aid for the banking sector. The MoU established the founding of a management company where banks that were in financial difficulty could transfer their real estate assets to, with the aim of mitigating the risks associated to those assets and therefore carry out an orderly divestment of the distressed assets.

Sareb received almost 200,000 assets, which were valued at 50.781 billion euros in two phases. The main tranche (36.567 billion euros) was transferred on 31 December 2012, which was contributed by the four nationalised banks: Bankia, Catalunya Banc, Banco de Valencia and NCG-Banco Gallego. The second transfer (14.086 billion euros) took place on 28 February, which was contributed by the four banks that received State funding: Liderbank, BMN, Caja3 and Banco CEISS. Out of all of the assets, 80% are loans and 20% are properties.

Sareb Shareholders

The majority of Sareb's share capital is private, 55%, whilst 45% is owned by the Fund for Orderly Bank Restructuring (FROB)

The majority of Sareb's share capital is private, 55%, whilst 45% is owned by the Fund for Orderly Bank Restructuring (FROB), the public entity created in order to manage the banking sector restructuring process.  

Sareb shareholders include national and international investors: 14 national banks (Santander, Caixabank, Banco Sabadell, Banco Popular, Kutxabank, Ibercaja, Bankinter, Unicaja, Cajamar, Caja Laboral, Banca March, Cecabank, Banco Cooperativo Español and Banco Caminos); 2 foreign banks, (Deutsche Bank and Barclays Bank), a utility company (Iberdrola); and 10 insurance companies (Mapfre, Mutua Madrileña, Catalana Occidente, Axa, Generali, Zurich, Reale, Pelayo, Asisa y Santa Lucía), as well as the FROB.

Divestment process

In order to achieve its sales objectives, Sareb is considering several sales marketing channels to tackle sucessfully its mission

One of the first tasks Sareb's management team carried out was to establish a solid and credible business plan, which enables it to successfully tackle the divestment process. The Plan covers the 15 year maximum lifespan that the organisation will have.

In order to achieve its sales objectives, Sareb is considering several sales marketing channels in order to successfully tackle its mission.

Retail

The company is currently relying on third parties - Altamira Assets Management, HAYA Real Estate, Servihabitat and Solvia-. At the same time, Sareb is also directly negotiating with investors who are interested in purchasing individual properties it has on its books, which given their characteristics, deserve special attention.

Institutional market 

Sareb has a wide range of extensive and flexible sales tools for the institutional market. One of these involves the possibility of compiling portfolios depending on the investor's specific profile, including primary or secondary homes, offices, industrial warehouses or income-producing retail units.

However, Sareb also has a unique and exclusive instrument, which has been specifically developed in order to serve as its very own divestment tool - Bank Asset Funds (FAB - Fondos de Activos Bancarios). These are flexible instruments, inspired by securitisation funds and collective investment institutions, and are specifically tailored to professional investors. Their set up and operation will be supervised by the Spanish Stock Exchange Commission (CNMV).

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