Fortress, hand in hand with King Street, Orion Capital and AEW are competing with Inmobiliaria Colonial, controlled by Villar Mir´s Group (24.4%), for Realia, a real estate firm in which FCC and Bankia hold a 61.7% stake.
Binding offers shall arrive at the bank and the builder´s table before July 31st. Moreover, a fourth fund is going to submit its bid for Realia.
Last Friday, Inmobiliaria Colonial proposed €650 million to the sellers but only for a branch of the real estate firm (Patrimonio). The bid of Colonial sets certain conditions. Not only does it expire on July 31st but also it represents over 50% of the offer value. Thanks to this interest, Realia´s shares soared up on the stock exchange market by 4.25% to 1.35 Euros a share.
According to current price of Realia on the stock, the stake of FCC and Bankia is worth of €256 million. The company´s portfolio contains mostly offices and shopping malls located in Madrid and Barcelona.
In May, Orion Capital Managers, AEW and Fortress together with King Street Capital Management submitted their bids for Realia, now in the reviewing process. At first, also founder of Inditex Amancio Ortega, Axa Real Estate, Oaktree Capital, Blackstone and Anchorage had shown interest in the auction but finally none of them took a part in it.
During the sale process, FCC and Bankia also transferred a real estate portfolio Realia owned in France through its arm SIIC de París to Eurosic. The firm paid €559 million for the controlling stake.
Original article: El Economista
Translation: AURA REE