Merlin Depreciates 3.5% on the Flotation Day

1/07/2014 – Cinco Dias

Merlin Properties the Socimi (Spanish REIT firm) has closed its debut session on the stock market at 9.650 Euros a share, that indicates a 3.5% decline in regard to its initial price set at 10 Euros. Its opening offer reached 1.25 billion, making the flotation the biggest since 2011 and the third in Europe in the last year.

The rent-oriented real estate investment trust began with €600 million in committed funds. Moore Capital and Banca March are its anchor investors.

Although the maximum reached at the IPO did not amaze anyone (€10.05 per share), a possibility exists that the offer may be enlarged by €80 million if Merlin´s underwriters decide to execute their green shoe option, thereby taking a 6.01% stake each, valued at €8 million.

Originally, the Socimi was about to issue 150 million shares (99.96% of the total stake) at 10 €/share. In that case, the green shoe option would have corresponded to 22.5 million shares.

The firm will strike mainly offices (both prime and secondary market), shopping parks, logistics assets, as well as hotels and commercial real estate.

Recently, Merlin Properties pledged to buy entire portfolio of Tree Inversiones Inmobiliarias for €739.5 million, including 880 banking branches and 5 buildings located all over Spain, presently leased to BBVA.


Original article: Cinco Días (by D. M. P.)

Translation: AURA REE