The two giants of the Spanish banking sector BBVA y BSCH have announced their decision to sell off almost all their property assets over the coming months. Of course, they have dressed up this strategy to make it politically correct. On the one hand, the BBVA refers to the centralisation of resources on a dedicated campus or business park; and another BSCH is selling off assets to fund the acquisition of 27.9% of ABN Amro. This correction Politics attempts to justify to the public strategic decisions that are plain to see – at least to us. BBVA It is centralising its facilities in a business park that will be entirely versatile; in other words, unlike the situation in Boadilla del Monte, it will be possible to market and to become profitable to let or sale to any interested prospective buyer. That is why there is talk of an «open-plan» layout with horizontal buildings featuring independent units that are easy to sell on a retail basis. For its part, BSCH «needs» to raise around €19,000 million to acquire its stake in ABN, although it has in fact been recognised in petit committee that this large-scale property sale will go ahead regardless of whether the acquisition of ABN goes ahead as planned or is called off for whatever reason. Clearly, the acquisition of the Dutch group could bring its share of properties into the group, but the reality is that the decision to sell the property portfolio of BSCH goes beyond and within the scope of this operation.Realising gains from property capital appreciation, raising liquidity to optimise assets, balance sheets and lending capacity, restructuring internal, centralisation of resources, etc… All these arguments and phrases media-related are nothing more than 
a smokescreen for the reallocation of assets within the banking giants. Other major players such as Telefónica are also jumping on the bandwagon, the last one being the fool. The investment The property market is no longer just a business, and large companies are making major decisions that they conveniently gloss over, but the essence of it all strikes us as very Clarita: A 180-degree shift in investment strategy. Furthermore, we find that obvious, the cycle has not only come to an end but has been milked to the full. The rental yields that these banks guarantee to potential buyers of their properties are nothing more and nothing less than market rates. And although most property owners have become accustomed to achieving net returns of 2 or 3% of the property’s value at the height of the property bubble, these figures are easily surpassed by any self-respecting banking operation. In other words, it is far more profitable for a bank to pay rents at this level and thus be able to to make profitable It is better to invest their liquid assets in alternative banking operations. Furthermore, this change of course also avoids the risk of their property values falling in the near future. It is a time for cash, and we will not tire of repeating this for as long as we believe it to be the case.
a smokescreen for the reallocation of assets within the banking giants. Other major players such as Telefónica are also jumping on the bandwagon, the last one being the fool. The investment The property market is no longer just a business, and large companies are making major decisions that they conveniently gloss over, but the essence of it all strikes us as very Clarita: A 180-degree shift in investment strategy. Furthermore, we find that obvious, the cycle has not only come to an end but has been milked to the full. The rental yields that these banks guarantee to potential buyers of their properties are nothing more and nothing less than market rates. And although most property owners have become accustomed to achieving net returns of 2 or 3% of the property’s value at the height of the property bubble, these figures are easily surpassed by any self-respecting banking operation. In other words, it is far more profitable for a bank to pay rents at this level and thus be able to to make profitable It is better to invest their liquid assets in alternative banking operations. Furthermore, this change of course also avoids the risk of their property values falling in the near future. It is a time for cash, and we will not tire of repeating this for as long as we believe it to be the case.
It’s easy, logical and straightforward, but the resistance from the average investor is surprisingly fierce. The cycle of property capital gains is drawing to a close (with the exception of certain properties prime), the equity market maliciously confirms this. Is there anyone who still has any doubts about the strategy to adopt with regard to property? Unfortunately, small, medium and even some large investors continue to cling to the notion that bricks and mortar will always be worth more, although the more «savvy» ones – who seem to have short memories – are once again placing their trust in the stock market as a substitute for their property windfalls. But is there anyone else?