Bankia and FCC have something in common: both are eager to get rid of their participation in Realia. Brussels established this as a condition in exchange for providing funds for Bankia´s restructuring process. And FCC wishes to reduce its debt by 34% (2700 million Euros) to reach 5200 million Euros in 2015, and Realia is a part of this disinvestment plan.
Right now Bankia controls 27,6% of the real estate company, opposite to the 30% controlled by FCC. According to financial sources consulted by Expansión, both companies have joined to carry out this sale and give way to an investor that will control 57,6% of the company. The buyer will have a dominating position, which should facilitate the transaction.
During the last few weeks, business banks have gotten near these companies to make proposals. One of these could carry out the sale through a capital extension. Bankia and FCC will provide a mandate to an investment bank with the intention of closing the operation before the end of the year, as confirmed by sources close to the negotiations.
Several analysts admit the difficulty of providing a real valuation of Realia due to the uncertainty of the sector. Its market capitalization reaches 198,3 million Euros after registering an increase of 1,42% up to 0,715 Euros. On the other hand, the company, which owns important buildings such as the Realia tower (one of the Kio towers) or the Fira tower in Barcelona, values its assets in 3.537 million Euros. From this value, the most important part is the patrimonial assets that reach 2.875 million Euros. But it also has a net financial debt of 2.166 million Euros at the end of the first semester of 2013.
Until now, Bankia has gotten rid of the listed participations through quick arrangements. This is what happened with IAG, Indra and Mapfre, and will probably be done with Iberdrola. Although it can wait until 2017 before getting rid of all its participations, the institution wishes to finish with it as soon as possible. FCC is awaiting several disinvestments. The company has put a strategic plan in place that forecasts extraordinary gains for 2.200 million Euros until 2015. After selling 50% of Proactiva, SmvaK and participations in several concessions, the company is now transferring the logistics subsidiary of the group and Cemusa, the urban furniture subsidiary. For 2014, the construction company hopes to close the sale of Globalvia together with Bankia.
The giants Cerberus and Blackstone are two of the potential candidates, according to financial sources. Both funds have been especially active in Spain in the last few months and especially, in the real estate sector. Cerberus has just acquired Bankia Habitat, Bankia´s real estate company, for 90 million Euros.
On the other hand, in August Blackstone acquired through the fund Magic Real Estate Blackstone, 1860 rented homes from the Municipal Company for Housing and Land in Madrid for 128,5 million Euros.