March 21, 2018 / 12:04 PM / 3 months ago

Sabadell in talks to sell property portfolios worth 3.3 billion euros

MADRID (Reuters) - Spain’s Banco Sabadell (SABE.MC) is in talks to sell two toxic real estate asset portfolios worth around 3.3 billion euros ($4.05 billion), a source with knowledge of the deal said on Wednesday.

The Banco Sabadell logo can be seen behind leaves on top of a building outside Madrid, Spain, April 13, 2016. REUTERS/Andrea Comas

Although Spain’s property market is enjoying a rebound after a decade-long crisis, lenders are still racing to sell their bad property assets and often offer discounts of around 60 percent from the face value of the portfolios.

Sabadell aims to sell more than 6 billion euros of soured real estate assets by 2020 after cutting them by 3.4 billion euros in 2017 to 15.2 billion euros.

One of the deal to sell 900 million euros of non-performing real estate loans is close to be agreed while talks on another other deal to sell 2.4 billion euros of foreclosed properties and other assets are at an earlier stage, the source said.

Sabadell and KPMG declined to comment on the news which was first reported by online newspaper Vozpopuli.

Consultancy firm KPMG is advising Sabadell on both deals. ($1 = 0.8141 euros)

Reporting by Jesus Aguado; Editing by Julien Toyer

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