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BBVA sells to Cerberus 80% of its real estate business by 4 billion

The bank remains as the entity with less exposure to the brick

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BBVA sells to Cerberus 80% of its real estate business by 4 billion

The BBVA will sell to Cerberus 80% of its real estate business for a price of approximately 4 billion euros, as announced this Wednesday entity to National commission of stock market (CNMV). The bank has emphasized that this operation almost completely reduces its exposure to real estate assets.

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In particular, group chaired by Francisco González has reached an agreement with a subsidiary of Cerberus Capital Management (Cerberus) to create a joint venture of real estate business in Spain. In relevant fact registered in CNMV, bank communicates that will sell to Cerberus 80% of society society in a transaction that marks a milestone in strategy of financial institution, which will focus on its main business, banking, after having least and Xposición Inmobiliaria in sector, according to market sources to Europa Press.

The real estate business contemplated in agreement is made up of some 78,000 real estate assets with a gross accounting value of approximately 13 billion euros, and assets and employees necessary for management of this business. It has valued whole of business in approximately 5 billion euros. The final price for 80% will be determined by volume of assets finally contributed, which may vary, among or reasons, by sales made to closing.

The CEO of BBVA, Carlos Torres has emphasized that this operation is "extremely important" because it reduces "very significantly" group's exposure to an activity outside its main business and allows it to reinforce transformation process.

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