27/11/2014 – Expansion
Hispania Activos Inmobiliarios, listed investment vehicle of fund manager Azora and held by billionaire George Soros, is in talks – with different advance stage – on real estate deals for joint amount of €1.49 billion which could be sealed before the takeover bid for Realia realized.
Thus, the REIT, known as a Socimi in Spain, is negotiating on two off-market hotel operations totalling at €29 million. Both transactions, missing signatures only, embrace 175 keys located in Malaga and Barcelona, Spanish Stock Market Commission (CNMV) informed.
Apart from those portfolios, another 16-holiday-resort package is currently found in the “due diligence” phase. The establishments amass more than 6.000 rooms and they are situated in Andalusia, the Canaries and the Balearic Islands. This €425 million worth is expected to be transferred to Hispania within 4-5 months.
Likewise, a 7.000-dwelling residential portfolio is going through the same valuation stage. These properties are located in Spain’s most important regions, mainly in Madrid, and their value amounts to €1 billion.
Furthermore, Hispania is in advanced talks on purchase of a Canaries resort asset with 700 keys and worth €40 million.
In case when the takeover bid submitted for 100 % of Realia, proposing a price of €0.49 per share, wins the tender, Hispania will have met its spending goal set up for its net funds raised at its IPO in less than 18 months.
However, as the company says, it will be inevitable to raise new capital to keep on investing in the identified opportunities.
Hispania reckons the real estate market recovery will have a positive impact on the Spanish economy throughout the upcoming years.
On the other hand, at the nearest general shareholders’ meeting to take place on December 26th, the new capital hike and amortization of a bridge loan will be proposed.
Also, Hispania will ask for exceeding a 40% LTV (loan-to-value) limit in line with the market and investment opportunities, but only until reaching a 50% cap.
Original article: Expansión
Translation: AURA REE
Photo by Ángel Cerdán