Spain's CaixaBank SA completed the sale of 80% of its real estate business to a subsidiary of funds managed by U.S. private equity firm Lone Star Funds.

The initial valuation of 100% of the real estate business was roughly €7.0 billion and the price for the portion of the business to be sold would be 80% of the final valuation at closing of the transaction, CaixaBank had said when it announced the deal in June.

The deal, which secured all the relevant approvals, deconsolidates the bank's real estate business that mainly comprises the entire available-for-sale portfolio of real estate assets as of Oct. 31, 2017, and 100% of the share capital of Spanish real estate operator and manager Servihabitat Servicios Inmobiliarios SL.

The said business was transferred to CORAL HOMES SL, a new company in which CaixaBank will retain a 20% stake, while a subsidiary of Lone Star Fund X and Lone Star Real Estate Fund owns the remaining 80%. The valuation of Coral Homes equates to roughly €4.97 billion, based on the €3.97 billion initial price for 80% of the share capital of Coral Homes.

Servihabitat will continue to service CaixaBank's real estate assets for five years under a new servicing agreement with CaixaBank and other group companies.