Fortress, Azora & King Street Submit Takeover Bid For 100% of Realia

20/11/2014 – Expansion

This is the last chapter of the sale of 60% stake in Realia by FCC and Bankia. After nearly a year of dealing with various candidates,  funds Fortress and King Street, together with their Spanish partner Azora were selected and now they are giving the finishing touch to their takeover bid for the entire real estate firm. This morning, Realia was suspended on the stock exchange market just before the opening of tenders ‘due to circumstances that might have disrupted normal trading’. For the same reason has been suspended Hispania Activos Inmobiliarios, a Socimi (REIT) led by Azora.

The proposal of the three bidding winners turned out to be more tempting than the offers of two other fore-runners: Torreal (controlled by Juan Abello) and Colonial that wanted to buy only Patrimonio branch of Realia, encompassing rental buildings and excluding land and residential assets.

Valuation

Realia’s current worth on the stock shows €324 million, with a 27% stock revaluation year-to-date. Its shares trade at 1.06 euros each, an incomparable price to the 6 euros paid in pre-crisis 2007. As of 31th December 2013, the real estate assets of Realia were valued at more than €3.38 billion. Today, after July sale of Siic de Paris, the figures would post around €2.11 billion.

Bankia and FCC strived at selling-off their holdings, first urged by Brussels to divest from non-core assets and the other willing to focus on its own business and cut in debt.

Given the green light, Fortress, King Street and Azora will now submit a 100% bid. The funds already know Realia very well as they have bought two debt portfolios of the firm, one worth €437 million from Sareb and the other valued at €100 million from Santander respectively.

According to data entered in the CNMV’s registries, FCC holds 36.887% in Realia, and Bankia-BFA owns a 24.953% stake. Also, the company is being held by Lualca (5.02%) and Grupo Prasa (5.004%).

 

Original article: Expansión (by R. Ruiz, C. Morán & D. Badía)

Translation: AURA REE

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