Spanish Banco Popular to Sell-Off €450m Bad Property Assets
In evidence of growing investor confidence in Spain’s property markets, Banco Popular is to sell its portfolio of Spanish real estate assets worth a total of more than €450m.
The portfolio is comprised of 1,473 homes in Madrid, Barcelona, Toledo and the Costa del Sol worth €300m; land plots in different Spanish regions to the value of €103.4m and includes 13 hotels, worth €47.2m, according to Bloomberg .
Documentation for the offer was prepared by investment firm N 1 and was sent out to potential investors last month. The Spanish bank’s strategy is to sell the first half of its portfolio this year and is at the core of its divestment programme of non-strategic assets.
So far in 2015, sales of Banco Popular’s real estate assets have reached record-breaking levels with the bank closing deals on €534m worth of homes in the first three months of the year, representing a whopping 115% increase for the same period in 2014.
Banco Popular has been anxious to stress that properties are not being sold at bargain basement prices to accelerate sales. On the contrary, it maintains that transactions are being closed at prices similar to their book value which backs current levels of portfolio valuations.
The bank joins others in selling its unproductive assets during a time when currency weakness is attracting wealthy foreign investors, mainly from the UK and US. In recent weeks, Spanish banks have offered unpaid debt and foreclosed assets worth €10,000m to international investment funds.
The most active financial institution in the rush to offload bad assets has been Bankia, with its ‘Big Bang’ project placing 38,000 residential units on the market including apartments, garages and storage worth €4.8bn. Bankia was also the first to bring to market a portfolio of outstanding mortgage loans despite concerns over repeating mistakes from the past.
With many of Spain’s banks holding property assets in areas sought-after by investors both before and after the global financial crisis, recent transaction activity looks likely to impede price growth over time. There has been a significant upward shift in interest from foreign investors in Spain’s property markets, mainly on the back of significantly increased purchasing power due to euro weakness.
When the euro inevitably finds a more advantageous level in FOREX markets, investment may start to fall slightly in Spain as investors digest the considerable choice of property that will become available over the next few months. With supply likely to outstrip demand, property prices could stagnate or even decline a little.
Nevertheless, if you’re an investor in dollars or pounds, it’s definitely advisable to make hay while the sun shines and you’ll almost certainly see some fantastic returns over time.
Article by +Roxanne James on behalf of Propertyshowrooms.com
More Brits Holiday in Cape Verde than Ever Before
Cape Verde remains a relatively unknown holiday destination although the hugely appealing 10-island archipelago in West Africa has risen in popularity among British soap stars and celebrities, alerting other Brits to its many charms.
The first quarter of 2015 has seen a significant increase in the number of overnight stays in Cape Verde, rising 3.1% over the three months from January, according to figures published by the National Statistics Institute (INE).
The figures reveal that the number of overnight stays reached 1.01 million with an actual increase in visitor numbers of just 136 (0.1%), showing that tourists stayed for longer in Cape Verde, or an average of 8.1 days.
Sal Island received 47.5% of total visitors to Cabo Verde in the first three months of the year followed by the islands of Boa vista (28%) and Santiago (11.8%). Of those visitors, 20% were visitors from the United Kingdom, 14% from the Netherlands, 13.7% from Germany and 12% from France.
Real estate in Cape Verde is extremely cheap at the current time, with plenty of opportunities for investors seeking income generating assets in the hospitality sector. As the tiny country’s tourist infrastructure develops further to meet rising demand, considerable growth is expected in both rental yield and capital value in its property market.
Cape Verde is a vibrant holiday destination with a pleasantly tropical year-round climate and much to offer visitors. Most of its wide selection of restaurants and eateries are family-friendly and the locals have a great laid-back vibe that is infectious, allowing tourists to truly relax on their trip.
As tourist infrastructure develops and air-connections to the destination improve, there is likely to be considerable growth that savvy investors can profit from by buying in the right area of this stunning holiday hotspot.
Article by +Roxanne James on behalf of Propertyshowrooms.com
The Old School Tie Advantage in UK’s Property Market
Latest research from Hamptons International shows that homes located close to independent schools and university towns are more stable investments than average UK properties. Properties in these areas are shown to retain their value, generate more rental income and generally recover at a faster pace from a housing market downturn than average UK properties.
According to the data, the national average UK property price in 2014 was at £173,500 contrasting with an average price of £354,000 for a home within a two mile radius of an independent school or university town. House prices in these areas currently stand at 116% of their 2007 peak in comparison with 98% for England and Wales as a whole.
London’s housing market has also reflected this trend in its property prices with houses close to independent schools at 66% higher than they were in 2007, compared with the average increase of 30%. Properties close to prestigious Westminster School (where Nick Clegg was a former student) are around 100% more than in 2007.
Data reveals that more than 35,000 overseas students are taught in independent schools within the UK and an additional 258,000 enrolled in university, representing an increase of 4% year-on-year.
Residential research director at Hampton’s, Fionnuala Earley said: “For many overseas parents with children studying in the UK this is a catalyst to investing in property – be this a student flat or a larger family home. For overseas investors looking to buy in the UK our research shows that average property prices within a two mile radius of an independent school have outperformed the national average. Similarly in university towns, capital and rental growth, boosted by student and employer demand alike continues to offer an attractive proposition to investors.”
Four out of five of the highest ranking universities in Europe are located in the UK, together with some of the most prestigious independent schools. This is undeniably a motivating factor behind foreign and domestic investment in property close to British educational establishments.
Article by +Roxanne James on behalf of Propertyshowrooms.com
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