Orion & AEW Favourites at the Realia Bidding

11/03/2014 – Expansion

After two months of vivid negotiations, FCC and Bankia bring the sale of the  62% stake at Realia Business to an end. At the beginning of the year, the two companies, advised by Goldman Sachs, received seven non-binding offers for the real estate firm, from such funds as Anchorage, Orion, Blackstone, Oaktree, Axa, AEW and Amancio Ortega´s Pontegadea.  Realia´s portfolio is worth €3.384 million.

The aforementioned negotiations brought up two leading funds: Orion Capital and AEW (linked to a sovereign fund from Abu Dhabi) that entered the due diligence stage. Perhaps, Pontegadea will join them (…). The sale is supposed to be closed in May or June.

Last year, the real estate company chaired by Ignacio Bayón carried out refinancing of a €792 million syndicated debt proceeding from land and dwellings. Also, Realia lost €51 million due to having realized provisions for €64 million but not having activated fiscal credits for €18 million. The group earned €203 million and €103 million of ebidta.

The future owner will have to begin with talks with Fortress and King Street, as these funds bought a €430 million lot from Sareb and a €100 million one from Santander respectively. Yesterday, Realia closed the day at €1.24 per share and capitalisation of €343.95 million.


Original article: Expansión (Rocío Ruiz)

Translation: AURA REE