Spanish regional governments selling property

Two of Spain's regional authorities are hoping to offload a substantial amount of real estate assets over the coming months, it has been reported.

According to Bloomberg, Catalonia and Andalusia are aiming to sell $1.3 billion (£835.5 million) worth of property between them by the end of 2011.

Director of assets for Catalonia Jacint Boixasa told the news provider that officials have chosen "the cream of the crop" for the portfolio in order to ensure that the assets in question are sold.

Both regions are getting rid of Spanish real estate in an attempt to raise funds to reduce their budget deficits.

However, head of research at CB Richard Ellis Group in Spain Patricio Palomar told the news agency that it is doubtful that all the properties will be sold by the end of the year.

"It's unlikely that a large-scale portfolio sale will be completed on time, due to the volatility in financial markets and restrictions on funding," he stated.

Meanwhile, Elena Salgado, Spain's economy minister, predicted yesterday (October 5th) that the country will see positive economic growth figures during the final two quarters of the year and will avoid slipping into recession.
 

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