Catalonian Government´s Property Road Show

21/03/2014 – Expansion

Private equity funds, investment banks, financial entities, family offices, property managers, lawyers and real estate advisors are exploring the lot of 13 buildings that the regional government of Catalonia put on sale for €215 million. As the amount is too high for local investors, most of the potential buyers are foreign (possible attendance of businessmen from the United Arab Emirates) or national groups.

The building cluster has been presented in Cannes and then in London where it attracted attention of 35 investors. Next week, the campaign will relocate to the New York. The initiative is being advised by Aguirre Newman and Clifford Chance.

After the three visits, sources from the Directorate General of the Historical Heritage of Catalonia assure that Barcelona is evoking great interest in foreign markets. (…).

Last year, the city witnessed several large transactions: the sales of the Hotel W for €200 million and Torre Agbar for €150 million, let alone another lot of 13 buildings purchased for €172 million. (…).

The present package offers a 6% yield in the first call and a 7.5% in the second. The Catalonian Government will stay in the buildings as a tenant for between 5 and 20 years. In turn, the investor may terminate the contract with the authority by sending notification 18 months before. Investors may present their offers by May 31st.



Original article: Expansión (Marisa Anglés)

Translation: AURA REE