Sareb, the country’s “bad bank,” is set to launch a Real Estate Investment Trust (REIT) focused on rental properties in a significant move that could reshape Spain’s real estate landscape. This strategic shift is part of Sareb’s broader effort to manage and maximize the value of its vast portfolio of distressed assets, which it acquired following Spain’s financial crisis.
Sareb plans to pool a substantial portion of its rental properties into this new REIT, or SOCIMI as they are known in Spain. The goal is to create a more efficient and profitable structure for managing these assets, while also addressing the growing demand for rental housing in Spain. With housing affordability and availability becoming critical issues in the country, this move positions Sareb as a key player in the rental market.
The REIT is expected to be listed on the stock exchange, offering investors a unique opportunity to gain exposure to Spain’s residential rental market. Sareb’s decision comes at a time when the rental sector is experiencing heightened interest from institutional investors, driven by the increasing shift towards renting over homeownership among younger Spaniards.
This new venture marks a bold departure from Sareb’s traditional focus on liquidating assets. By leveraging the SOCIMI structure, Sareb aims to generate steady income streams from its rental properties while providing liquidity options for investors.