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MADRID (Reuters) – Spanish bank Santander said on Wednesday it had bought 20% of a U. S. real estate portfolio for $1. 1 billion from the Federal Deposit Insurance Corporation (FDIC), which will retain 80% in a joint venture with the bank.
Under the deal, Santander will service 100% of the assets in the portfolio.
The FDIC’s $9 billion portfolio of New York-based multifamily real estate assets held by the FDIC following the collapse of Signature Bank in the U. S. has been discontinued. U. S. Earlier this year.
Santander said the deal would be cumulative from 2024 and would consume around two fundamental CET1 issuances from Santander Group, which would be repaid over three years.
Santander Chief Executive Ana Botin said in a statement that the bank “is a major player in the U. S. multifamily sector” with a $13. 5 billion multifamily real estate portfolio.
The Spanish lender said the U. S. remains a strategic market for the bank.
Last month, Botin said the bank doesn’t want acquisitions to grow profitably for many years, but that it will look at smaller, complementary acquisitions.
As for a broader strategy to expand into the United States, Botin told the Reuters NEXT convention in New York in November that the bank plans to deepen the lender’s presence in corporate banking.
The joint venture’s loan portfolio is comprised of three pools of rent-controlled and rent-stabilized multifamily loans, Santander said.
The bank participated in this transaction through Wachtell, Lipton, Rosen
(Reporting by Jesús Aguado; Editing by Cynthia Osterman)