BFA-Bankia Group’s real estate arm Bankia Habitat closed 2012 with sales of more than 5,600 properties from its holdings of foreclosed assets. The pace of disinvestment picked up by 23.6%, with a sharp increase near yearend. These property disposals generated 550 million euros in income for the bank, 18.9% more than in 2011.
Adding this figure to the one for subrogation of developer loans and disinvestments in singular assets, including land and developments, which accounted in all for some 9,000 units, the total property assets disposed of by the group numbered more than 14,600, bringing in over 1,600 million euros.
By region, BFA-Bankia sold off 1,920 properties in Madrid and 1,200 in Valencia, as well as 480 in Castilla-La Mancha, 380 in Catalonia and another 380 in Andalucía. There were a further 320 transactions in Castilla y León and 160 in La Rioja.
“The commercial policy pursued by Bankia Habitat injected life into property disposals in a year marked by very sluggish sales in the overall real estate market. Another driver for this activity was the announced end of the home-purchase tax deduction this past 1 January,” Bankia said in a press release.
In this context, BFA-Bankia more than doubled its sales in December over the averages seen in the preceding months. The last month of the year saw a total of 1,100 property sales, a full 70% higher than in November.
Subrogations of homes held by developers reached 2,300 units, a fivefold increase over the previous months and more than twice the level recorded in July, the second strongest month in the year, when more than 900 property loans were subrogated.
The bank also obtained 22 million euros on its disposals of rented buildings and more than 120 million euros on its disinvestments in land and singular assets.
Spanish banks intervened by the government sold in total 40,000 real estate assets last year, which generated 5 billion euros after discounts of up to 60%.