Spanish bank Santander has sold an network of almost 1,200 bank premises to Sun Capital Partners, insurer Pearl Group and Drago Real Estate Partners for EUR 2 bn. The bank said it has booked EUR 800 mln in capital gains from one of the largest commercial real estate transactions in Europe this year. The bank will lease back the offices for 45 to 47 years.
Spanish bank Santander has sold an network of almost 1,200 bank premises to Sun Capital Partners, insurer Pearl Group and Drago Real Estate Partners for EUR 2 bn. The bank said it has booked EUR 800 mln in capital gains from one of the largest commercial real estate transactions in Europe this year. The bank will lease back the offices for 45 to 47 years.
News of the sale - said to reflect a yield of 5% - came a week after the Spanish bank confirmed it had sold 10 office buildings to retail entrepreneur Armancio Ortega's Grupo Pontegadea for EUR 458 mln.
Santander announced last June that it was selling off EUR 4 bn in property assets in a sale-and-leaseback deal to help finance its part of a consortium bid for Dutch bank ABN Amro. At the time the sale of the total portfolio was expected to yield capital gains of up to EUR 1.4 bn. Santander reportedly received offers from GE Real Estate, Deutsche Bank and Goldman Sachs for some or all of a large parcel of properties being sold in lots.
The entire property portfolio comprises 44 corporate buildings, including Santander City, the bank's 1.5 million m2 head office in western Madrid, and about 1,200 offices. The Spanish lender is only retaining its office in Santander, where the bank was founded 150 years ago.
