Spain’s Sareb Said to Seek Investors for Madrid Office Buildings

Spain’s bad bank is seeking investors for a portfolio of seven office buildings in Madrid, a person with knowledge of the plan said.

The properties that make up the Corona portfolio have 65,000 square meters (700,000 square feet) of office space and an occupancy rate of 80 percent, said the person, who asked not to identified because the information isn’t public. The closing date for non-binding bids is Oct. 4, the person said. Binding bids must be submitted by the last week of November.

Spain set up the bad bank, known as Sareb, last year to absorb 50 billion euros ($66 billion) in real estate assets from lenders including the Bankia group that took state aid. Sareb last month agreed to sell a majority stake in a group of almost 1,000 homes known as Project Bull to private-equity firm H.I.G. Capital LLC as it began the process of offloading assets.

Sareb will probably package the office assets in a fund structure and sell a minority stake, the person said. The portfolio, composed of buildings in the Calle Velazquez, Montecarmelo and Campo de las Naciones areas of the city, also comes with 1,200 parking spaces, the person said.

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

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

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