BBVA has agreed to sell 80% of its foreclosed Spanish real estate portfolio to Cerebus Capital Management, through a joint venture expected to close in 2H. BBVA will sell the assets with a gross value of 13 billion euros ($15.8 billion) for four billion euros. The sale only includes foreclosed loans, not nonperforming ones. BBVA had already reduced its real estate exposure 37% YOY to 6.4 billion euros.
The sale should eliminate BBVA's major asset-quality headache.
Banco Santander agreed to sell 50% of its Spanish real estate to Blackstone.