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Hispania On Verge Of Closing Purchases Worth €200M+

27 April 2015 – Cinco Días

The company managed by Azora informs the CNMV about its “advanced agreements”.

The billionaire George Soros owns a 17% stake in the Socimi.

Socimis have become very important players in the real estate sector in recent months through numerous purchases. And there are many more in the pipeline. On Thursday, Hispania Activos Inmobiliarios announced that it was on the verge of closing purchases worth more than €200 million.

These listed real estate investment companies are listed vehicles, created to undertake the acquisition and development of urban real estate assets for lease. They have tax advantages, for example they pay corporation tax at a rate of 19%, and they are required to distribute dividends.

Hispania has sent the National Stock Exchange Commission information about its updated portfolio, which explains that it has made “advanced agreements” with a value of more than €200 million, and is on the verge of signing the contracts.

Moreover, the Socimi reports that it involved in various deals involving assets worth more than €2,200 million, although it does not specify the negotiation phase. Hispania, which is managed by the company Azora, also updates the value of its current portfolio, to €993 million, held in various properties. In February, it agreed an alliance with Barceló with the aim of launching Bay, the first Socimi dedicated to investing in the hotel sector in Spain. Initially, the vehicle acquired 11 hotels containing 3,946 rooms. Thanks to that transaction, 57% of Hispania’s portfolio is hotel-based; 27% is invested in offices and 16% is residential.

George Soros owns a 17% stake

The fund Soros Management, managed by the billionaire investor George Soros, controls 16.7% of the listed company, according to the information provided to the CNMV. Furthermore, the manager Paulson & Co, owned by the investor John Paulson, holds an equal stake and so is another important shareholder.

Hispania also has several other hotels in its portfolio, including the Vincci Málaga, the Hesperia Ramblas (Barclona) and the Guadalmina (Marbella).

Original story: Cinco Días (by Alfonso Simón)

Translation: Carmel Drake