11 October 2017 – Expansión
The list real estate company Quabit has announced a new line of financing to partially fund its growth plan. On this occasion, the company controlled by the construction group Rayet has signed an agreement with Alpin Equities, which is leading a group of funds that are finaning the loan, amounting to €15 million.
The conditions of the loan, which has a 3-year term, include the possible conversion of all or some of the outstanding loan balance into shares in Quabit if “certain circumstances” arise.
The operation with Alpin Equities is the third alliance of its kind that Quabit has closed in recent months. Until now, the residential property developer had reached two financial agreements with the fund Avenue Capital, for a combined total of €100 million.
The objective of these three lines of credit is to allow the real estate company, which emerged a decade ago from the merger between Astroc, Landscape and Rayet Inmobiliaria, to close new land purchases, some of which are in very advanced phases of negotiation, say sources at the company, such as the construction of 14 new developments, which will result in turnover for the company of almost €180 million.
Following these agreements, Quabit’s residential portfolio will amount to almost 1 million m2 of land for the construction of 4,700 homes, whereby exceeding its own objective for the period between now and 2021 (4,090 homes).
The company has announced that it will convene an extraordinary shareholders meeting soon to approve a non-monetary capital increase, with which to materialise the transfer of several plots of land from Rayet, as well as the operations closed with Avenue.
Original story: Expansión (by Rocío Ruiz)
Translation: Carmel Drake