Lar to Invest €200M Buying Retail Assets After Divesting Other Assets Worth €425M

25 April 2019 – El Economista

Lar is entering a new phase in which it will specialise in retail after divesting all of its offices and logistics assets. The Socimi has received total proceeds of €425 million from its recent sales, of which it intends to dedicate around €200 million to new purchases over the next three years.

According to José Luis del Valle, President of Lar España Real Estate, the Socimi is now going to focus on operations in the commercial segment only, including both asset purchases and new developments, to continue to expand its €1.5 billion portfolio.

Lar is coming to the end of the development of Vilanova Park in Sagunto (Valencia), Lagasca 99 in Madrid and Lagoh in Sevilla and so it has the capacity to take on more promotion projects in the future, according to Miguel Pereda, CEO of the Socimi.

Following its recent asset sales, Lar has approved the distribution of an extraordinary dividend amounting to €25 million, charged against the accounts for 2018, equivalent to €0.80 per share. This represents the largest dividend in the Socimi’s history and is 67% higher than last year’s payout.

On Wednesday, the Socimi completed the sale of the last office building left in its portfolios – the property located at Calle Eloy Gonzalo in Madrid, which is now in the hands of Swiss Life.

In addition to its forecast new operations, Lar is also working on the repositioning of its assets, with plans to invest €40 million in total.

Original story: El Economista (by Alba Brualla)

Translation/Summary: Carmel Drake

135