Acciona Delays IPO Of RE Subsidiary Due To Political Uncertainty

11 May 2016 – El Confidencial

Acciona has decided to delay the decision regarding the possible IPO of its real estate subsidiary on the basis that the current “political uncertainty does not favour” the operation, according to the Chairman of the company, José Manuel Entrecanales (pictured above).

“We will wait for a reasonable period of time or we will proceed with the most viable alternative”, he said with respect to the different options that the company is analysing for its new company Acciona Real Estate, the subsidiary into which it has segregated all of its real estate assets, worth around €630 million and primarily comprising homes for rent in Madrid.

The group was weighing up the partial sale of this new company, either by opening it up to a new partner or by listing it on the stock exchange, but “the current political uncertainty does not seem to favour the latter option”, said Entrecanales in a speech to Acciona’s General Shareholders’ Meeting. Nevertheless, the group will push ahead with its goal of reducing the debt linked to these assets.

The group completed the constitution of this real estate subsidiary at the beginning of the year. It was created with assets worth €60 million and debt amounting to €190 million.

63% of the assets comprise 1,382 homes for rent, most of which (73%) are located in Madrid, as well as several retail premises associated with those homes.

Another 22% of Acciona Real Estate’s portfolio comprises tertiary assets, such as four office buildings that it owns in Madrid and Barcelona, two hotels in Marbella and Barcelona, respectively, a 50% stake in the Arturo Soria Plaza shopping centre in Madrid and 54 retail outlets. The portfolio is completed with a batch of 16 plots of land, which are ready to develop, covering a surface area of around 155,000 sqm.

Original story: El Confidencial

Translation: Carmel Drake