Sareb is engaging with several public administrations about selling a substantial portfolio of homes. The discussions followed a government announcement by Prime Minister Pedro Sánchez about a plan to mobilize up to 50,000 properties from the so‑called bad bank to address housing shortages in certain regions of Spain.
Of the 50,000 homes, 21,000 are earmarked for public use or for civic buildings to be purchased by communities. Sareb sources indicate confidence in these negotiations. In addition, talks are advancing on the sale of around 1,000 flats to local and regional authorities. Since the chief executive’s statement, Sareb has fielded information requests from more than 300 public institutions, in coordination with the Spanish Federation of Municipalities and Provinces (FEMP).
Despite a positive stance, the deals are expected to take longer than initially projected due to changes within various administrative bodies following the May 28 elections. At present, only 9,000 of the 21,000 homes are ready for transfer; the remaining 12,000 units require some form of physical or documentary preparation, such as energy certifications.
Several management teams have already begun moving forward, even ahead of the government’s announcement. In the Valencian Community, a near‑final agreement is close for the purchase of 500 properties, and the Generalitat of Catalonia is finalizing what would be the largest sale of a public‑sector portfolio from the bad bank. On a smaller scale, Xunta de Galicia acquired 40 flats for about 3.5 million in February, while the Murcia Region added 15 flats in March.
Public institution housing that can be acquired by congregations and municipalities concentrates along the Mediterranean arc, with notable activity in Castilla La Mancha, Castilla y León, and Galicia. Sareb notes that this pattern mirrors the assets acquired from former savings banks and their subsidiaries between 2012 and 2013. In total, 2,266 apartments are associated with Murcia, followed by 2,093 in Castellón, 1,769 in Galicia, and 1,364 in Tarragona.
Sareb to accept discounts on sale of Árqura Homes
A separate strand of Sareb’s strategy involves selling the largest portfolio of plots within its Arqura Homes development program. According to El Periódico de España, a publication of the Prensa Ibérica group, Sareb has tasked Deloitte with market research to identify interested buyers.
The public company intends to shed most of this stake while keeping a minority share to benefit from future project returns. No final decision has been made on the stake size, with possibilities ranging from a 25% cut to 40% or 45% if buyer appetite is strong. “There is a lot of interest in Arqura Homes,” confirm sources close to the bad bank. If the transaction closes, it is not expected before 2024.
To realize this deal, Sareb might need to accept a lower price. The sale of Arqura Homes faces a challenging contractor market. Large listed players such as Aedas Homes, Neinor Homes, and Metrovacesa are trading at discounts around 50% to the book value of their assets. Potential buyers are likely to demand a similar reduction, as explained by El Periódico de España.
From Sareb’s perspective, a discount is considered reasonable given the buyer’s risk exposure. Yet many observers note that the board is unlikely to approve a 50% reduction unless it’s viewed as a viable alternative to maintaining operations and squeezing out more value, as has been the pattern so far.