Banco Espirito Santos Creates Unit to Sell Real Estate Assets

Banco Espirito Santo SA (BES), Portugal’s biggest bank by market value, created a unit to sell real estate assets that were repossessed from its clients, Chief Executive Officer Ricardo Salgado said.

“We have many real estate assets,” Salgado told reporters in Lisbon today. “But if we have many real estate assets that is because we managed to recover credit faster than our competitors.”

The Lisbon-based bank created a unit called Area de Gestao Imobiliaria, or AGI, that is trying to sell these assets to Portuguese emigrants and foreign investors in countries such as China, Russia and Brazil, he said.

Espirito Santo sold 1,267 real estate assets in the first nine months of the year for 240 million euros compared to 1,289 real estate assets sold last year, Salgado said. About 40 percent of those assets were paid for immediately in cash, he said.

To contact the reporter on this story: Henrique Almeida in Lisbon at halmeida5@bloomberg.net

To contact the editor responsible for this story: Jerrold Colten at jcolten@bloomberg.net

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