Spanish financial group Liberbank has put on sale its branch Mihabitans in order to cut part of its real estate strategy, the Spanish National Securities Market Commission (CNMV) has informed.
Mihabitans, which was created in 2016, runs thousands of flats, commercial premises and properties that the bank has been acquiring over the last years of foreclosure crisis in Spain.
The operation is part of the firm’s balance sheet consolidation strategy, which has begun about three months ago, and led Liberbank to drop €169m last week.
Liberbank, which has not offered details of potential buyers yet, nor the price the transaction will have, has said it will inform the market when a binding agreement is reached.
At the end of Q1 2017, the bank had €2.95bn in non-performing assets after having trimmed that figure by €254m in the first three months of the year. In relation to March 2016, the company has decreased this portfolio by 38.3%.
Liberbank has a coverage of 121% in the portfolio of non-performing loans, while the updated value of the assets forms 129% of the net debt associated with them.