Colonial to Enlarge Capital & Save SFL

24/03/2014 – Cinco Dias

The managing board of Colonial has decided to suplement the startup capital of €1 billion with €266 million more. The new enlargement was approved by the board on 21 January. Initially, the plan foresaw selling 20% of Société Foncière Lyonnaise (SFL) in which Colonial holds a 53% stake. Obtaining a new syndicated loan would allow payment of €1.759 million loan that expires at the end of the year.

(…) The Villar Mir Group that owns 20,27% of Colonial´s capital contributed by €300 million last year. This year the company will invest at least €50 million more. Villar Mir defeated Brookfield at the war on control over the real estate firm.

The U.S. private equity firm acquired 46% of syndicated loan valued at €1.759 million and revealed an intention of restructuring property sales and swapping the debt for assets. (…).

The nearest extraordinary shareholders´ meeting will take place on 8 April. (…) “Successful execution of the capital enlargement and obtaining a long-term syndicated loan will permit paying-off the current syndicated loan of €1.8 billion, keeping the majority stake at SFL and stabilizing the Loan to Value below 50%” – points out Colonial.

One of the most apposite steps taken by the real estate company was the creation of Asentia, its private “bad bank”. (…)



Original article: Cinco Días (Alberto Ortín Ramón)

Translation: AURA REE