How we manage our properties
Our asset management focuses on sales, as set out in our mandate from the financial authorities in 2012. However, given how different all the more than 132,434 properties that we own are, the management has focused on achieving the maximum value uplift from many assets, such as unfinished developments and land, in order to obtain higher medium-term returns before their final sale. For example, three years ago we launched a plan to complete half-finished developments. The plan has been implemented in certain locations where demand has started to rise for this type of asset. In some projects, we even work alongside local developers via joint-ventures.
Focused on rent
As part of the plan to increase revenues for properties that are unable to achieve a satisfactory sales price on the market, Sareb has developed policies focused on rent. In doing so, the company not only generates a source of recurring income, but also raises the value of the property and helps to further professionalise the rental market in Spain. Sareb currently has a total of 12,745 rental properties, with 81% of these being residential and the rest commercial.
Helping to convert loans into properties
Sareb's portfolio initially comprised 80% loans and 20% properties, percentages that have changed each year as more sales have been closed and more loans have been converted into properties. Converting a loan begins after a loan has been cancelled in exchange for underlying assets (DIL), or after enforcement on the unpaid debt corresponding to the loans initially taken out by developers. This gives Sareb access to assets that are easier to sell – homes, plots of land and commercial properties move quicker on the market – and that can provide higher returns. Placing these properties onto Sareb's balance sheet also helps to diversify its real estate supply and boost the number of units it has on the market.
In 2019, Sareb added €1.8 billion worth of properties to its balance sheet, 31% more than 2018.