Merlin Seeks Funding to Do More RE Shopping

15/12/2014 – Expansion

Th Socimi (Spanish REIT) Merlin Properties is currently negotiating with banks on refinancing a 825 million euro loan taken for its arm Tree Investment for purchase of 880 branches and office buildings fully let to BBVA. Merlin inherited the credit together with the real estate portfolio formed for its listing on the stock.

The Trust admitted the arrangements target at obtaining more equity for carrying out more purchases. Since going public on 30th June and raising 1.25 billion euros at the IPO, Merlin has spent nearly 1.19 billion euros on the Spanish property, including the units of BBVA and the Marineda shopping mall in La Coruña. The Socimi led by Ismael Clemente is held by such big-name investors as Marketfield and Goldman Sachs.

Merlin is in talks with eight entities, among which are found Santander, CaixaBank, Calyon, BNP, Popular, Credit Suisse and Société Générale.

This REIT is not the only one to negotiate with lenders as Hispania Real, the Socimi controlled by listed Hispania, has filed for a 250 million euro credit line from Santander and CaixaBank in order to take over 100% of Realia.

During the first nine months of the year, Merlin earned 27.8 million euros, thanks to a 25.8 million gross income and 29 million capital gains. Friday on the stock closed at a price of 9.95 euros a share, up 1.84%.

The four Socimis trading on the Continuous Market (Merlin Properties, Hispania Real, Lar España and Axia Real Estate) have jointly invested more than 2.3 billion euros since their flotations earlier this year.


Original story: Expansión (by Rocío Ruiz)

Translation: AURA REE