Spanish bank Santander sells real estate unit to American private equity firm Apollo for $903M
Banco Santander SA, the biggest bank in Spain, sold its real estate division to Apollo Global Management. The transaction is valued at €664 million ($903 million), according to Bloomberg.
In a statement issued today in Madrid, Santander said an Apollo fund bought 85% of Altamira, the fund that manages foreclosed properties and loan recoveries in Spain. The bank posted a gain of €550 million (€385 million after tax) on the assets it held, the report detailed.
Foreign investors are looking to make profits in Spain as the country exits from the financial crisis that started in 2008. Last year, New York-based buyout firm Apollo agreed to purchase Evo Banco from national lender NCG Banco and FinanMadrid from the state-run Bankia group, the report stated.
Latin American investors are also closing in on the Spanish banking industry. Banesco Group of Venezuelan tycoon Juan Carlos Escotet acquired NCG Banco the previous month. This deal followed the investment made by Colombian billionair Jaime Gilinski in Banco Sabadell SA, Bloomberg reported.