Axiare Launches €96M Accelerated Capital Increase

8 March 2017 – Expansión

Late Tuesday, Axiare Patrimonio launched an accelerated capital increase, aimed at qualifying investors, which will see it issue securities representing 10% of its share capital and worth €96 million, according to a statement made by the Socimi.

The operation will result in the dilution of the 15% stake that Colonial holds as the Socimi’s largest shareholder, given that the operation will be carried out without any preferential subscription rights, in other words, without reserving any of the securities for Axiare’s current investors.

In addition, the placement firms behind the operation have been entrusted with the job of “making a selection” from amongst the requests for new shares that they receive from investors, before awarding the new securities.

Colonial’s investment has never been welcomed by Axiare, which regards Colonial as a competitor. In addition, following the real estate company’s entry into its share capital, the Socimi’s Board of Directors engaged independent legal experts to “analyse the different consequences that this operation could have for the Socimi”.

Nevertheless, Axiare is adamant that the aim of the capital increase is to raise funds to buy new buildings, which it will add to its real estate portfolio in the short term, as well as to incorporate new investors into the business, expand its free floating stake and increase its liquidity.

By virtue of Axiare’s capital increase, it will issue 7.19 million new shares, equivalent to 9.99% of the Socimi’s current share capital, worth €95.9 million on the basis of the company’s current market prices. The firm closed trading on the stock market on Tuesday at €13.350 per share.

Financing new asset purchases

The Socimi led by Luis López de Herrera-Oria is looking to raise funds to undertake new property purchases and whereby continue to increase its portfolio, despite the fact that so far this year it has already closed three acquisitions for a combined total of €140 million.

Currently, Axiare owns a real estate portfolio worth €1,400 million, of which 74% comprise office buildings.

Nevertheless, the Socimi is currently analysing potential asset purchases worth €1,100 million, of which properties worth around €400 million worth are in advanced stages of negotiation and are close to being acquired.

Original story: Expansión

Translation: Carmel Drake