Spanish bank Sabadell plans to convert Solvia, one of the country’s largest holders of foreclosed homes, into a realtor in order to benefit from the continued resurgence in the property market, according to press reports.
The decision marks a change of tack for the bank, which was previously considering listing the division on the stock market, or selling to a rival bank or a financial investor. Instead, Sabadell will convert Solvia in a realtor, with branches across Spain run under franchise agreements, Spanish newspaper Cinco Días reported. Those franchises will be able to sell Solvia assets acquired through foreclosure, as well as the assets of Solvia’s clients including Sareb. In addition, the franchisees will be able to act as estate agents brokering home sales in their local areas. According to the report, Solvia wants to have 24 franchised branches and 12 owned offices across Spain by the end of the year.
Sabadell’s plan for Solvia reflects the recovery in the Spanish real estate market as house prices rise and sales volumes improve. Since 2012, the company’s annual sales have exceeded €2.5bn, according to bank sources cited in the report, with residential transactions a significant part of the turnover.