12 July 2018 – Voz Pópuli
The ownership of the real estate company Altamira may change hands over the coming months. The company controlled by the fund Apollo has hung up the “For Sale” sign after the refinancing and restructuring of its contract with Santander, signed just a few days ago, according to financial sources consulted by Voz Pópuli.
At least 85% of the real estate firm will go on the market. The servicer currently manages assets worth €54 billion. The US fund Apollo is the entity that controls the majority stake, whilst its ownership is shared equally with two other partners: the largest Canadian fund, CPPIB (Canada Pension Plan Investment Board); and the main Abu Dhabi investment fund, the ADIA (Abu Dhabi Investment Authority) sovereign fund.
Each of them controls 28.3% of Altamira, just like Apollo, although it is the latter who leads the real estate company and chairs its Board.
After four and a half years of investment, the main shareholders have decided that now is the right time to sell, given the strong performance of the real estate market and the appetite from large investors to enter the business.
In fact, sources consulted indicate that several international and Spanish investors have already approached Altamira. One of the candidates is Haya Real Estate, a similar platform, owned by Cerberus, which is interested in growing its business ahead of a potential stock market debut.
Another possibility being rumoured in the market is that CPPIB itself may purchase the 56% stake in Altamira currently owned by Apollo and the Abu Dhabi sovereign fund. The Canadian fund entered the market for the acquisition of toxic asset portfolios from the banks last year with a bang, by closing an operation with Sabadell; and this year, it has signed another deal with BBVA.
The possible sale of Altamira comes after the refinancing of the real estate firm agreed with the banks and the renegotiation of the contract with Santander. Thanks to this operation, the shareholders of Altamira are now going to share out a €200 million dividend, according to El Confidencial, which means that the numbers already add up for the funds.
The relationship between Apollo and Santander
Apollo and its two partners already tried to exit Altamira two years ago but failed to reach an agreement with Santander, which made a low offer that was not accepted. Since then, the real estate firm has pushed ahead with its own internationalisation by branching out into Portugal and Cyprus.
Original story: Voz Pópuli (by Jorge Zuloaga)
Translation: Carmel Drake