Spain's BBVA In €1.6B S&L of Branches

Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

BILBAO, SPAIN-Spanish banking group BBVA, in a similar move to its main competitor Banco Santander in the last 18 months, is near to closing the sale and leaseback of 1,350 bank branches to Deutsche Bank’s RREEF Alternative Investment group.

Media reports said the largest part of the operation, valued at €1.2 billion and covering 80% of the branch network, is expected to close this week although industry sources say it could take longer. The remaining 20% of the network, valued at a proportionally higher €400 million, is expected to take a further two or three weeks to complete. RREEF’s minority partner in the operation will be the US private equity fund, Area, which renamed last year from Apollo Real Estate.