Goldman Sachs buy Spanish Lake property portfolio for €355 million

Bankia, the rescued Spanish bank, subject to corruption investigations, has announced the sale of the “Lake” property portfolio consisting of 38 Spanish real estate assets including apartment blocks, retail shops and logistics warehouses, to Goldman Sachs, which has paid €355 million for them.

In a statement, Bankia explained the Lake portfolio deal included 27 apartment blocks with a total of 1,336 homes and an area of 125,000 square metres in addition to 1,565 parking spaces, 584 storage rooms and 48 retail units on the ground floor level of the buildings.

Apart from the above 27 residential buildings, Goldman Sachs have acquired nine retail units with an area of 18,000 square metres and two logistics warehouses with an area of 10,521 square metres.

Spanish banks, burdened with as much as €40 billion of repossessed real estate, are under increasing pressure to sell as prices fall and investors return to the market after a property slump. Losses linked to real estate at BFA-Bankia, a banking group forged from a merger of savings banks led by Caja Madrid, pushed Spain into taking a €41 billion European bailout to prop up lenders in 2012.

Firms such as Goldman Sachs and Cerberus Capital Management LP have acquired real estate assets in Spain after house prices dropped by more than 45 percent from their 2007 peak. Last year Goldman Sachs bought apartment blocks and social-housing developments from local authorities in Madrid in a partnership with Spanish private-equity firm Azora Capital SL.

For detailed information about transactions in the Spanish real estate investment market contact

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