Sareb is advancing the plan to sell what could become the largest land portfolio designated for homebuilding. The Sociedad de Gestión de Activos Procedentes de la Restructuración Bancaria, created to manage the assets left after the real estate downturn, has contracted Deloitte, an economic and financial consultancy, to assess the organizational structure of the developer business involved. This is noted in the Government Contract Portal as part of the ongoing asset management process.
In practical terms, the so-called bad bank will transfer the potential sale of a majority stake in the land held by Árqura Homes to major market players, while attempting to remain a minority partner to capture a share of future profitability from real estate developments. If feasible, the operation is intended to unfold through a structured, competitive process inviting bids from developers and mutual funds for the largest tract of land slated for sale in the coming years.
Contract documents indicate a distribution of Árqura parcels: 30% are in the finalist stage, 38% are in urban renewal, and the remaining 32% are in residential development. Of the latter, 21% are at initial stages, 28% are in basic project phases, and 10% are under construction. Another 41% are in licensing and implementation. Geographically, Árqura’s footprint spans 30 provinces and 16 autonomous communities, with more than half concentrated in Andalusia (33%), Catalonia (14%), and Madrid (10%). The details reflect a broad, multi-region strategy for development and sale. [Citation: Government Contract Portal]
Acquisition of Árqura Homes
Árqura Homes emerged in 2019 through a collaboration between the bad bank and North American fund Värde Partners. Four years later, after Frob took control of Sareb in the middle of the prior year, the new management decided to repurchase 10% of the backing it had previously ceded to Värde. The operation was paused in January of the current year, and Sareb announced that Árqura had the capacity to promote up to 17,000 residences. In 2019, the company owned 811 million in land and work in progress, a total that may signal potential value in a future sale. [Citation: Public contract records]
Public data show that Árqura has delivered 1,682 houses since its inception and holds a pre-sale portfolio of 3,257 units. The company does not maintain a separate corporate structure; management has been transferred to Aelca, a Värde company, leaving Sareb with an option to buy. If a fund or contractor chooses to purchase the land Sareb plans to sell, the deal can be achieved by acquiring assets directly, without needing a full integration of teams. [Citation: Public records]
What Deloitte Will Do
Sareb received six bids for a consulting contract valued at 3.31 million euros, with a base budget of 4 million. Deloitte’s engagement, amounting to 272,250 euros including taxes, spans 21 months and unfolds in two phases. The initial phase involves evaluating the economic, financial, and operational feasibility of the sale, gauging current market interest, and identifying potential investors. Upon completion, a structured sales process will run, similar to an auction but using a sealed-envelope approach, provided Sareb approves. [Citation: Procurement notices]
The criteria for winning the contract were demanding and within reach only for large-scale players in the real estate market, whether operating nationally or within a specialized department. The specification outlines a transaction consultancy with a potential value around 50 million euros, alongside a joint venture or platform capable of handling housing sales exceeding 100 million, plus deals in land acquisitions and rental housing ventures exceeding similar thresholds.”