Cuatrecasas has advised BBVA on purchasing REIT Tree Inversiones Inmobiliarias from Merlin Properties for over €1.9 billion. The company was the former owner of 662 properties, 659 of which are bank branches and 3 are unique buildings, with a nationwide total of approximately 298,000 sqm metros in 268 municipalities and 49 provinces.
This transaction gives the bank greater flexibility to manage its network of offices in Spain and will also result in significant financial savings. BBVA expects the transaction to have an initial capital consumption of seven basis points and to create an initial net negative impact on the multinational’s results of approximately €200 million. However, this impact will be offset by the accumulated savings expected after the transaction is closed.
Only six weeks after requesting approval from the Spanish Securities and Exchange Commission, this transaction has been completed and could be one of the largest of the year in the Spanish real estate market.