Bankia sets first partnership with developers to auction 440 properties

Habitat Bankia, the company that manages the real estate assets of the BFA-Bankia Group, launched Friday a sizeable auction, which for the first time incorporated properties from development companies.

Bankia becomes the first financial institution in Spain to set up such an initiative. The aim is “to facilitate house stock drainage both from Bankia itself and from developers, through a partnership with the construction sector,” the bank said in a press release.

The operation involves the largest volume of assets that the Group has offered to date, with over 1,100 new construction property from different regions–Madrid, Valencia, Castilla y Leon and La Rioja, Castilla-La Mancha, Canary Islands, Andalusia and Aragon .

The bank will provide finance for the purchase of real estate property under certain conditions: up to 100% of the amount of the sale with the maximum of 80% of the appraised value, with a maximum repayment term of 40 years and an interest rate of Euribor plus a spread of 0.90 points. It confirmed there will be no origination fees.

For housing developers, the entity gives the buyer the option of subrogation under the conditions of the mortgage signed by the company.

Of the total assets, 677 belong to Bankia Habitat’s portfolio and more than 440 come from 16 developers. The buildings are priced with a discount that will be between 30% and 60%, the bank explained. Starting property prices are at the €40,000 level. Among the properties, according to Bankia, there is an apartment in El Campello (Alicante) with an output value of €90,000, and a flat with garage and storage room in Alcalá de Henares (Madrid) for €143,000.

The auction will be open until November 13. Information may be obtained online and at any branch of Bankia.

Besides this auction, Bankia Habitat has been in force since the end of September in a campaign that offers 619 properties with discounts of up to 60%. Bankia Habitat is also preparing various initiatives including discounted real estate assets in the face of major trade fairs to be held in autumn and beginning today with Barcelona Meeting Point.

For Urbe, the Mediterranean Real Estate Fair to be held from October 19 to 21 in Valencia, Bankia Habitat offers a portfolio of more than 209 real estate assets with a maximum discount of 55%.