Saving Banks in Spain woorking together to sell property assets

Source: Cajas and repossessed property

It appears that many of the Spanish savings banks, approximately 23 of the 42 'cajas' intend to cooperate in selling the property assets that have been repossessed. Unlike say Santander or BBVA many of these savings banks a regional in nature so combining their assets in this way allows them to benefits from economies of scale, one of the many benefits of co-operatives.

The new company, Ahorro Corporación Soluciones Inmobiliarias, could become the single largest property sales channel in Spain. The 23 cajas that will take part will be able to sell any type of property from rural land to entire developments. The company claims that it already has stock for sale valued at 3 billion Euros.

Residential properties will be offered for sale at discounts of up to 25%, thus covering the cajas original investment in the property. So after selling the property at the original value of the mortgage they gave, the cajas will then be willing to offer financing up to 70% of the sales price, excuse me, up to 70%!

23 of Spain's 42 savings banks, known locally as cajas, have joined together to create a type of 'outlet' sales channel to help them sell their impaired property assets. The company, called Ahorro Corporación Soluciones Inmobiliarias (ASCI), will be managed by Ahorro Corporación, a financial services company jointly owned by Spain's cajas.

On an interesting note though, the 2 largest Cajas in Spain, Caja Madrid and La Caixa will not be involved in this co-operative.

And the media has kindly already referred to this endevour as Caja Basura'

Regards
Andrew Belles
Costa del Sol property

About the Author:

A real estate agent based in Southern Spain.