Blackstone Group L.P, a private equity and asset management firm based in the U.S, will acquire a 51% stake in Spanish bank, Banco Popular, making it the largest investors in Spanish real estate, reports the Financial Times. Banco Popular was saddle by €37 billion in toxic assets, following the economic crisis which struck nearly ten years ago now. In June, the European authorities declared the bank was ‘failing or likely to fail’ and put the lender in resolution.
Banco Popular will try to reduce its toxic property assets by floating a real estate unit worth around €6 billion, reported Spanish newspaper El Pais. The plan, announced in May, is part of an attempt to reduce property assets by €15 billion by 2018.