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Lone Star Is Said to Shelve Sale of Spanish Property Business

Construction of residential buildings in El Caaveral, on the outskirts of Madrid, on Tuesday 17 April 2024. The government reported on a shocking plan to boost housing construction with measures to speed up the granting of licenses. Photographer: Magda Gibelli/Bloomberg (Magda Gibelli/Bloomberg)

(Bloomberg) -- Lone Star Funds and CaixaBank SA have walked out of negotiations with at least two suitors to sell their real estate management company Servihabitat and decided to keep the business, according to people with knowledge of the matter.

The alternative asset manager and the Spanish bank chose to retain control of Barcelona-based Servihabitat after failed talks with DoValue SpA, Italy’s biggest manager of credit portfolios and real estate assets, and Hipoges Iberia SL, said the people, who asked not to be named because the discussions were private. Hipoges is a Spanish real estate management company controlled by KKR & Co. 

A decline in fees has encouraged consolidation in the specialist financial services sector, and Lone Star and CaixaBank last year gave Mediobanca SpA a mandate to find a buyer. 

Servihabitat is one of the biggest financial services specialist in Spain, with around €10 billion ($10.8 billion) in assets under management, mainly from Lone Star. 

Representatives from Lone Star, CaixaBank, DoValue and KKR declined to comment.

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