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Testa Completes Acquisition of 1,329 Homes from CaixaBank’s RE Arm for €207M

25 May 2018 – ABC

The listed real estate investment company (Socimi) Testa Residencial has today completed the acquisition of 1,329 homes from BuildingCenter, the real estate subsidiary of the CaixaBank group for €207 million.

The sale agreement was reached in March and accounts for more than 90% of BuildingCenter’s assets, according to a statement issued by Testa. The remaining 129 homes included in the agreement will be acquired for €21 million over the coming months, as certain conditions are fulfilled, added Testa.

On the basis of its existing rental contracts, the Socimi estimates that the homes acquired now will generate annual revenues of €8.5 million from 1 June onwards.

Once Testa has acquired the remaining homes, that figure will increase to €9.3 million per annum. The homes currently have an occupancy rate of 92%.

CaixaBank’s portfolio has a “prominent presence” in the main Spanish cities, including Madrid, Palma de Mallorca, Barcelona and Valencia, and together account for 66% of the total acquired portfolio, explains Testa.

In terms of the financing of the operation, Testa says that it has today signed a bank loan amounting to €92 million, with a seven-year bullet maturity (repayment of the initial capital on the maturity date) and an interest cost of approximately 1.6%, covered at 100%.

The Socimi Testa Residencial plans to go public either before or after the summer through a public sale offer (OPV) of the existing shares and a public subscription offer (OPS) through a capital increase.

Original story: ABC

Translation: Carmel Drake