The bank last year launched the sale of all of its Spanish realestate assets except for its headquarters in the northern city ofSantander. The bank had initially valued the real estate assets tobe sold at $5.9 billion. However, with this recent sale, the totalcomes to about $6.5 billion, generating a total capital gain ofabout $2.5 billion.

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Santander Financial City is a 395-acre complex, which includesoffices, amenities and green space designed by architect KevinRoche. It has more than four million sf of building space. The sitealso includes a hotel, training center, nursery school, sportsfacility and 18-hole golf course.

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Last June, Santander had announced its intention to sell of itsreal estate assets with its stated purpose to "optimize the Group'sbalance sheet." In November, it completed two sizeabletransactions.

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The first sale included 10 buildings located in the mainbusiness areas of several Spanish cities, including Madrid,Barcelona, Valencia, Valladolid, Sevilla, Malaga and Palma deMallorce. These properties were acquired by Grupo Pontegadea. Thesecond included 1,152 offices in Spain. These spaces, primarilybank branches, were acquired by Pearl Group, whose main shareholderis Sun Capital.

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Propinvest is a British property company run by private investorGlenn Maud, which has been actively acquiring properties acrossEurope. In December, Propinvest was part of a consortium thatacquired Citigroup's Canary Wharf headquarters in London for about$1.4 billion. CB Richard Ellis arranged the transaction.

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