21/03/2014 – El Confidencial
Two main shareholders of Realia, FCC and Bankia, decided upon a U-turn in their existing strategy. They will divide the real estate company into two smaller entities to facilitate sale of the entire firm. According to source close to the operation, both owners put on sale Société d’Investissements Inmob. Cotée from Paris (SIIC from Paris) for gross value of €1.500 million included in the Spanish company´s divestment plan.
Goldman Sachs, their official advisor, proposed such solution after FCC and Bankia had received many non-binding offers. (…).
The new divestment scheme has got more advantages. By selling the property in Paris, Realia could obtain €540 million revenues. Asset value of the French portfolio oscilates around €1.500 million, out of which €500 million in syndicated loan shall be taken off. (…).
Among the potential buyers interested in the Parisian firm there are: AXA, Crédit Agricole, SFL and Pontegadea. However, fall in occupancy rate from 91% to 85% in the Société´s buildings and weak French economy might affect the sale. Realia itself admits that the rental prices there hit record low and post 705 €/sqm. (…).
Goldman Sachs targets at selling Realia Business before the end of June. The transaction will have to be approved by Fortress, KSAC and the U.S. private equity itself because it also holds a stake at the real estate company. (…).
Original article: El Confidencial (Agustín Marco)
Translation: AURA REE