Merlin Seeks Raising Record €1.5 Bn at Its Socimi´s IPO

16/06/2014 – Financial Times

The new real estate investment trust (in Spain known as a Socimi) forged by Merlin Properties is expected to raise staggering €1.5 billion funds at its initial public offering (IPO).

Merlin has already collected €600 million in commited funds and has recently launched a road show for potential investors.

According to Dealogic, if the company gathers the amount, the flotation will be the largest-ever, beaten only by Bankia´s €3.1 billion IPO in 2011. The operation will be greater even than Russian PIK Group´s €1.4 billion flotation in 2007.

The first purchase of the newly created Socimi will be a €740 million worth of 880 bank affiliates leased to BBVA by Tree Inversiones Inmobiliarias.

The Spanish property turned back to investors´must-buy list, especially for the British and the Irish real estate prices have jumped up recently.

Big-name buyers like George Soros and John Paulson purchased stakes in other Spanish Socimis, Hispania and Lar España.

The directors who push Merlin towards flotation are each going to grab a €7.5 million share in the Socimi.

Marketfield Asset Management, Moore Capital and hedge funds Chenavari, Monarch, EJF, Bennett and Gruss are said to buy a stake in the trust as well, at 10 Euros a share.

Merlin claims it will aim at offices, shopping malls, industrial, logistics and urban hotels, both “core” and “core-plus” in Spain and Portugal.

The shares will start selling on 30th June.


Original article: Financial Times (by Kate Allen)

Summary: AURA REE