Banks Repel Rodex´s Offer For the Castellana 200

9/05/2014 – Cinco Dias

Main lenders of Reyal Urbis that took control over the Castellana 200 building through debt execution have now rejected a pre-eliminary proposal by Rodex, run by Luis Lopez de Herrera – Oria. The offer was accepted a month ago and then it raised a lot of confusion in the sector.

Claiming to be backed by U.S. fund Anchorage, Rodex was preparing a Socimi (Spanish REIT firm) named Alza Real Estate to raise the €130 million of pledged amount. As it turns out, both creation of the trust and financial support from Anchorage started to fall apart.

“The situation is very tight”, say consulted sources “the banks feel offended by the offer”. They are planning to meet up on Wednesday and make a firm decision upon the case and giving up the sale process is not ruled out.

The lenders´disappointment about receiving offers for less than €150 million concured with publication of a report on annual accounts of Alza Real Estate, according to which the company has got a €106.8 million unpaid loan and another of €26.4 million to become past overdue in 2014.

 Alza Real Estate is chaired by Tomás Alarcón, Juana Saiz and Luis López de Herrera-Oria as its CEO. Moreover, former general director of Eurohypo in Spain is found among the firm´s executives.

According to 2012 accounts of Complejo Inmobiliario Castellana 200, complex is held by Reyal Urbis and the following lending institutions: Solvia (Sabadell´s property manager), Anida (BBVA), Cántabro Catalana de Inversiones (Santander), Valencia de Inversiones Participadas (Banco de Valencia, now taken over by La Caixa) and Bankia. The two latter transferred their stake to Sareb.

Jones Lang LaSalle estimated the complex value at €146 million. The property includes two office buildings, a shopping center and developable luxury hotel space for 136 rooms, a conference hall, an auditorium for 250 people, a spa, a gym, an open-air swimming pool and two restaurants.

At the moment of real estate fever in Spain with thousands of big name investors (e.g. Pimco, Anchorage, etc) looking for a property for themselves, the sector cannot afford any lapse like the Castellana 200 sale.


Original article: Cinco Días (by A. Ortín Ramón & A. Gonzalo Alconada)

Translation: AURA REE