Deutsche Bank is still betting on the Spanish property market and has bought €400 million in doubtful property developer loans from Bankia. The deal was carried out by the German bank’s funds, which could have paid around 150 million euros for the assets.
This is the second transaction of this kind which Deutsche Bank has closed with Bankia in the last six months. At the end of 2015, it acquired €600 million in unpaid company loans backed by real estate as collateral. The latest operation takes place just a few days after the Federal Reserve (Fed) said the German bank had failed in the qualitative part of the US banks’ stress tests. This failure is an additional concern for Deutche Bank which has lost 45% of its stock market value so far this year.
For Bankia, this recent sale is in line with its ongoing asset divestment programme.