Middle Eastern funds gain interest in Spanish real estate portfolios

February 14, 2011 at 11:06 am Leave a comment

Middle Eastern investment funds continue to examine the status of Spanish banks and real estate portfolios. They are willing to inject capital into Spanish banks, but they want to focus on their real estate portfolios. Some of these investment funds are interested both in the discount that they can get for buying the houses, as well as the predictions for prices in 2013. This is the year when prices are supposed to reach their bottom level.

According to some, the entities could assume a capital loss  40 percent, although some would have leeway to sell their portfolio with a 50% discount thanks to strong provisions that have been made. If the banks could have enough power to fix prices in the Spanish market and sell at these prices, this could give a signal about the end of the property market adjustment. After four years of crisis, this is still unknown.

In 2010 Spanish banks sold only 5% of their portfolio and properties are still entering their portfolio.

 

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Entry filed under: News, Real estate. Tags: , , , .

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