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Merlin Expresses Interest in Aena’s RE Plans for Madrid & Barcelona Airports

7 May 2018 – La Vanguardia

Merlín Properties is interested in participating in the real estate development plans that Aena is going to develop in the vicinity of the airports in Madrid and Barcelona, according to the CEO of the company, Ismael Clemente.

The Socimi is going to place its focus on the development of logistics centres and office buildings included in these two plans, according to details provided following the company’s General Shareholders’ Meeting.

“We are interested and we will look at them (the plans) with all the interest in the world”, said Clemente. “When they launch the project, we will be there”, he said.

By virtue of these plans, Aena is looking to develop 2.7 million m2 of land around the Barajas aerodrome, which will require a total investment from the private sector of around €3 billion and which will constitute one of the largest urban development operations in Europe. In the case of El Prat, the land spans around 1.84 million m2 and will involve an investment of €1.3 billion.

On the other hand, during his speech at Merlin’s General Shareholders’ Meeting, the CEO expressed the company’s intention to sell the entire 17% stake that it holds in Testa Residencial, the largest rental home company in the country, when that firm makes its upcoming stock market debut. The Socimi expects to obtain proceeds of around €300 million from that transaction.

“The reasonable thing would be for us to sell the entire stake if the transaction price is reasonable”, said Clemente, who attributed this decision to the fact that the Socimi’s investment in Testa “brings down the average return of the company” because it is a housing company.

Original story: La Vanguardia

Translation: Carmel Drake