Lone Star authorized by Brussels to stay with CaixaBank real estate

The European Commission sees no competitive problems in the business where CaixaBank, owner of 95% of BPI, controls a 7 billion euro real estate portfolio for Lone Star, which owns 75% of the New Bank.

"The Commission concluded that the proposed acquisition does not raise competing concerns because of the limited impact on the market structure," notes a European Commission press release released on Thursday, 11st October, stating that "the transaction was examined under the simplified procedure”, that is to say, from the outset it did not require special attention from Brussels.

It was at the end of June that CaixaBank announced it would transfer 80% of its real estate business to a company owned by funds managed by Lone Star. The sale involves real estate assets existing in October 2017 and classified as available for sale. Also the real estate subsidiary, Servihabitat, is part of the transaction.

"The preliminary assessment for the entire real estate business, as of October 2017, amounted to 7 billion euros," said the bank headed by Gonzalo Gortázar at the time. The gross amount of these assets was, at the same date, EUR 12.8 billion.

In practice, the business involves the creation of a company that owns these real estate assets, in which Lone Star will own 80% of the capital and CaixaBank will keep the remaining 20%. And the price to be paid will be the equivalent of 80% given the value of the real estate assets existing at the time (some of those that existed in October 2017 may have already been sold).

In June, Gonzalo Gortázar explained that the operation allowed CaixaBank to accelerate the timetable for non-productive assets (bad loans and real estate), while also improving its capital ratios. In addition, there will be a pre-tax cost savings of 550 million euros in the period between 2019 and 2021.

The deal is authorized by Brussels (although there are other conditions in these deals that are not known whether they are already fulfilled) a day after the New Bank, owned by Lone Star, closed the sale of a portfolio of real estate assets worth 700 million euros, expecting to receive 388.9 million euros for the deal.

The European Commission sees no competitive problems in the business where CaixaBank, owner of 95% of BPI, controls a 7 billion euro real estate portfolio for Lone Star, which owns 75% of the New Bank.

"The Commission concluded that the proposed acquisition does not raise competing concerns because of the limited impact on the market structure," notes a European Commission press release released on Thursday, 11st October, stating that "the transaction was examined under the simplified procedure”, that is to say, from the outset it did not require special attention from Brussels.

It was at the end of June that CaixaBank announced it would transfer 80% of its real estate business to a company owned by funds managed by Lone Star. The sale involves real estate assets existing in October 2017 and classified as available for sale. Also the real estate subsidiary, Servihabitat, is part of the transaction.

"The preliminary assessment for the entire real estate business, as of October 2017, amounted to 7 billion euros," said the bank headed by Gonzalo Gortázar at the time. The gross amount of these assets was, at the same date, EUR 12.8 billion.

In practice, the business involves the creation of a company that owns these real estate assets, in which Lone Star will own 80% of the capital and CaixaBank will keep the remaining 20%. And the price to be paid will be the equivalent of 80% given the value of the real estate assets existing at the time (some of those that existed in October 2017 may have already been sold).

In June, Gonzalo Gortázar explained that the operation allowed CaixaBank to accelerate the timetable for non-productive assets (bad loans and real estate), while also improving its capital ratios. In addition, there will be a pre-tax cost savings of 550 million euros in the period between 2019 and 2021.

The deal is authorized by Brussels (although there are other conditions in these deals that are not known whether they are already fulfilled) a day after the New Bank, owned by Lone Star, closed the sale of a portfolio of real estate assets worth 700 million euros, expecting to receive 388.9 million euros for the deal.

The European Commission sees no competitive problems in the business where CaixaBank, owner of 95% of BPI, controls a 7 billion euro real estate portfolio for Lone Star, which owns 75% of the New Bank.

"The Commission concluded that the proposed acquisition does not raise competing concerns because of the limited impact on the market structure," notes a European Commission press release released on Thursday, 11st October, stating that "the transaction was examined under the simplified procedure”, that is to say, from the outset it did not require special attention from Brussels.

It was at the end of June that CaixaBank announced it would transfer 80% of its real estate business to a company owned by funds managed by Lone Star. The sale involves real estate assets existing in October 2017 and classified as available for sale. Also the real estate subsidiary, Servihabitat, is part of the transaction.

"The preliminary assessment for the entire real estate business, as of October 2017, amounted to 7 billion euros," said the bank headed by Gonzalo Gortázar at the time. The gross amount of these assets was, at the same date, EUR 12.8 billion.

In practice, the business involves the creation of a company that owns these real estate assets, in which Lone Star will own 80% of the capital and CaixaBank will keep the remaining 20%. And the price to be paid will be the equivalent of 80% given the value of the real estate assets existing at the time (some of those that existed in October 2017 may have already been sold).

In June, Gonzalo Gortázar explained that the operation allowed CaixaBank to accelerate the timetable for non-productive assets (bad loans and real estate), while also improving its capital ratios. In addition, there will be a pre-tax cost savings of 550 million euros in the period between 2019 and 2021.

The deal is authorized by Brussels (although there are other conditions in these deals that are not known whether they are already fulfilled) a day after the New Bank, owned by Lone Star, closed the sale of a portfolio of real estate assets worth 700 million euros, expecting to receive 388.9 million euros for the deal.

The European Commission sees no competitive problems in the business where CaixaBank, owner of 95% of BPI, controls a 7 billion euro real estate portfolio for Lone Star, which owns 75% of the New Bank.

"The Commission concluded that the proposed acquisition does not raise competing concerns because of the limited impact on the market structure," notes a European Commission press release released on Thursday, 11st October, stating that "the transaction was examined under the simplified procedure”, that is to say, from the outset it did not require special attention from Brussels.

It was at the end of June that CaixaBank announced it would transfer 80% of its real estate business to a company owned by funds managed by Lone Star. The sale involves real estate assets existing in October 2017 and classified as available for sale. Also the real estate subsidiary, Servihabitat, is part of the transaction.

"The preliminary assessment for the entire real estate business, as of October 2017, amounted to 7 billion euros," said the bank headed by Gonzalo Gortázar at the time. The gross amount of these assets was, at the same date, EUR 12.8 billion.

In practice, the business involves the creation of a company that owns these real estate assets, in which Lone Star will own 80% of the capital and CaixaBank will keep the remaining 20%. And the price to be paid will be the equivalent of 80% given the value of the real estate assets existing at the time (some of those that existed in October 2017 may have already been sold).

In June, Gonzalo Gortázar explained that the operation allowed CaixaBank to accelerate the timetable for non-productive assets (bad loans and real estate), while also improving its capital ratios. In addition, there will be a pre-tax cost savings of 550 million euros in the period between 2019 and 2021.

The deal is authorized by Brussels (although there are other conditions in these deals that are not known whether they are already fulfilled) a day after the New Bank, owned by Lone Star, closed the sale of a portfolio of real estate assets worth 700 million euros, expecting to receive 388.9 million euros for the deal.