Unicaja negotiates the sale of its real estate subsidiary with Cerberus and Apollo

Unicaja is holding of advanced conversations with the subsidiary of Cerberus, Haya Real Estate, and of Apollo, Altamira, for the transfer of Gestión de Inmuebles Adquiridos (GIA) (Management of Purchased Real estate), according to the digital news Voz Pópuli.

This deal forms part of the strategy of the financial company form Malaga to accelerate its exit from some investments as we begin 2017, although the company has not pointed out any firm decision in this respect.

According to Voz Pópuli, the Malaga firm making capital gain is the key factor in these moments for the fiscal impact of a rise in ‘Impuesto de Sociedades’ (IS) (Societies’ Tax); and the necessity to accumulate capital to hand back the public help from the Banco Ceiss (604 million) during the next year, for which they have asked Brussels for more time. It would be an alternative solution to leaving the stock exchange in order to repay the contingent convertible bonds (CoCos) from the Fondo de Reestructuración (Frob) (Restructuration Fund).

The subsidiary which Unicaja is negotiating for sale is Gestión de Inmuebles Adquiridos (GIA).  This is a platform which administers and sells the foreclosed residential assets of the group, with a staff of about 40. Its volume of business was 108 million in 2015, 5% more than the year before. GIA lost 114 million last year, inasmuch as Unicaja uploaded its real estate holdings. In principle, the deal seems to be just the sale of the management of the real estate, in their ownership, although the sale of a small portfolio of about 50 million could take place, according to sources close to the transaction.

The company, which had Braulio Mendel as president until this year, is not among the most exposed to real estate and construction sectors within the financial sector. It has foreclosed assets to the net value of 1,051 million, according to the June figures, which, on totalling the provisions, brings the transaction total to 2,690 million.

Negotiations began before summer and have had various ups and downs since then. Some kind of resolution is hoped for at the beginning of 2017.