1m unsold or unfinished residential properties Santander to recapitalise property fund.

FT.com / Companies / Banks - Santander to recapitalise property fund: "Santander, the Spanish bank, will recapitalise a frozen €2.5bn ($3.4bn) property fund after failing to liquidate its assets in the country’s depressed real estate market.
The bank, the largest in the eurozone, said on Friday that it would “contribute resources to the fund through the subscription of new units” to meet outstanding redemption claims and avoid winding up .The move comes just under two years after Santander sought regulatory permission to freeze payouts from the fund, called the Santander Banif Inmobiliario FII, to stop investor flight amid the global financial crisis and domestic property crash. It said at the time investors had sought to withdraw 80 per cent of the vehicle’s value – then €2.62bn – at once. It won approval to limit redemptions to 10 per cent of total investments.
Spain’s housing bubble burst in 2007, and the subsequent downturn and credit crisis has left the country with almost 1m unsold or unfinished residential properties."

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