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Spain’s SAREB to buy up to €110bn in property and loans at 50% discount

Spain’s new bad bank, dubbed Asset Management Company (AMC), will transfer around €100bn to €110bn in foreclosed real estate assets and defaulted loans in the first two waves of acquisitions at carrying value of between €50bn to €55bn, reflecting a blended discount of 50%.
By James Wallace
October 30, 2012 | 7:30 P.M.

SAREB’s mandate the Spanish-language acronym for the AMC is to work through Spain’s dormant foreclosed real estate, development land and defaulted property loans has an estimated timeline of 15 years, in a “bad bank” structure similar to Ireland’s NAMA, with an equity stake holding equivalent to 8% of the asset base at transfer price.   

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