Banco Popular agrees to sell majority stake in its real estate asset portfolio to Blackstone

Banco Popular S.A. has approved the sale of a majority stake in its real estate portfolio to Blackstone Real Estate Partners Europe V.

The transaction will involve the creation of a company to which Banco Popular will transfer assets with an aggregate gross book value of approximately €30 billion ($35 billion), as well as 100 percent of the share capital of Banco Popular’s real estate management company, Aliseda.

The valuation attributed to the Spanish assets of the business (e.g. properties, loans and tax assets, not including Aliseda) is approximately €10 billion ($12 billion). This is consistent with the valuation and provisions made by Santander during the acquisition of Popular and does not, therefore, result in any material capital gain or loss for Santander or Popular. The final valuation is subject to change depending on the assets remaining within the business at closure and following the integration of Aliseda.

Blackstone will own a majority 51 percent stake in the new company while also assuming management responsibilities, while Banco Popular will own the remaining 49 percent stake. As a result, the aforementioned assets will no longer be consolidated on Banco Popular’s balance sheet.

The transaction, which is subject to regulatory approvals and the usual adjustments associated with transactions of this nature, is expected to close in the first quarter of 2018.