Banif Immobiliare, the Santander-managed real estate fund that froze payouts in February, has sold its landmark property, the Plenilunio shopping centre in Madrid for a total of EUR 235 mln.
Banif Immobiliare, the Santander-managed real estate fund that froze payouts in February, has sold its landmark property, the Plenilunio shopping centre in Madrid for a total of EUR 235 mln.
The Plenilunio mall was sold to Orion Columba, a fund managed by private equity group Orion Capital Managers. The transaction volume represents a 16% discount to the latest appraised value for the asset (EUR 280 mln), and a 26% to the value at the end of the fourth quarter (EUR 320 mln).
Banif also said it has agreed to sell an office property in Las Rozas business park in Madrid for a further EUR 27.5 mln, a 12% discount to the latest appraised value. The property was sold to Orion Capital Managers’ fund Orion Carina. The proceeds from the sales will be used to repay investors, Banif said.
Santander hired CB Richard Ellis earlier this year to manage the sale process of EUR 3 bn in property assets representing around 90% of the portfolio owned by its Banif property fund.
Plenilunio, the crown jewel of the Banif portfolio, was bought from Riofisa in 2006 for EUR 275 mln. In March, Banif also sold an office building on Paseo de la Castellana in Madrid to the Spanish public insurance group Consorcio de Compensación de Seguros for around EUR 70 mln.
In February the Spanish lender requested a freeze on payouts from Banif, Spain's largest real estate fund, after investors sought to withdraw 80% of the vehicle's capital. Santander had asked the Spanish stock market regulator to allow it to suspend full reimbursements from the fund for a period of two years. During this time, the fund will 'start an orderly programme of disposals', the bank said.
The fund, which is 62%-invested in residential properties, has lost about 15% of its value in the fourth quarter of last year as a result of falling property values. It currently owns 7,195 apartments, 25 office buildings and five shopping centres. A list of the fund’s commercial assets up for sale is available in the PropertyEU’s March 2009 publication.
