Santander to Lift Block on Property Fund Redemptions

Banco Santander SA, Spain’s biggest bank, will lift a block on redemptions from a property fund in March and add funds to cover requests for withdrawals.

The bank will contribute funds to its Santander Banif Inmobiliario FII fund “in view of the exceptional circumstances,” to help meet outstanding redemption requests and avoid its dissolution, Santander said in a statement sent by email. The fund’s value was 2.5 billion euros ($3.3 billion) at the end of November, the Santander, Spain-based lender said.

Santander said in February last year it would seek a suspension of redemptions after a surge in withdrawals sparked by an announcement in December 2008 that it would revalue assets in line with “market reality” as Spain’s property boom turned to bust.

To contact the reporter for this story: Charles Penty in Madrid at cpenty@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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