Blackstone has agreed a deal with Banco Popular that will see the bank sell it a 51% stake in a €30bn portfolio of real estate assets and loans.
The portfolio will be owned by a new company that the private equity firm’s Blackstone Real Estate Partners Europe V fund will own the majority of with the other 49% retained by the bank. The company will also take on Popular’s real estate management company, Aliseda.
The loans and assets have been valued at €10bn, reflecting a 66.7% discount and Blackstone has paid just above €5bn for its stake.
As a result it will ease pressure on the balance sheet of the seller’s new parent, Santander, which bought the failing bank in June for €1.
The agreement has been confirmed by the European Union Directorate General for Competition.
Jon Gray, global head of real estate at Blackstone, said: “This significant investment reflects our continued confidence in the robust recovery of the Spanish economy.”
Chairman of Santander Spain, Rodrigo Echenique, said: “The agreement significantly reduces our real estate exposures and further strengthens our balance sheet, allowing us to focus all our efforts on supporting customers. The interest generated in this transaction among international investors is also a clear sign of confidence in the Spanish economy and we are grateful to all bidders who participated.”
Morgan Stanley advised Banco Popular.
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