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Realia Buys c/Goya, 29 For €27m Amid Hispania Takeover Bid

21 January 2015 – El Confidencial

Realia has just purchased an office building, located in the most elite section of Madrid’s Calle Goya, between Lagasca and Velázquez, for €27 million. In principle, this deal appears to be simply another one in the growing list of real estate transactions being conducted in the best areas of Madrid and Barcelona. However, it has connotations that make it different.

This acquisition comes amid the takeover bid that Hispania has made for Realia, for the outright purchase of the real estate company. And so, if that transaction comes to fruition, the Socimi managed by Azora will become the owner of Calle Goya, 29; another jewel in the crown of its growing list of assets.

Nevertheless, it may have to share the limelight with Hermanos Revilla, because that company is behind the transaction. Realia is the main indirect shareholder of Hermanos Revilla, since in addition to the 9.5% stake it owns directly, it also controls another 51% through its 76% stake in Planigesa.

The remaining 39.5% of the company is owned by the Revilla family, the industry dynasty whose patriarch, Emilio, was kidnapped by the terrorist group ETA in 1988. Father of three children, Antonio, Margarita and Carmen, the former now manages Hermanos Revilla’s investments and has negotiated the purchase of Goya, 29, according to market sources.

In fact, although Realia indirectly holds the controlling stake in the company thanks to Planigesa, and its CEO, Ignacio Bayón, carries out the same role in the affiliate, executive power over the company lies with Antonio Revilla. Market sources say that the company has always been managed with great autonomy and has financed this transaction using its own funds, which amounted to €48.7 million at the end of 2013, the last full year for which figures are available.

These factors explain why Realia, a real estate company controlled in turn by FCC and Bankia, has undertaken a transaction of this kind in the middle of the takeover bid launched by Hipania: the Revilla family is holding the reins of the transaction. The Socimi managed by Azora has put an offer on the table that values each share in the real estate company at €0.49, which brings the total value of the company to €157.7 million, versus the current listed value of €0.59.

A Busy Year End

On 22 December 2014, the CNMV admitted the takeover bid proposals for review, which are currently being analysed by the institution. Once the supervisory body gives the go-ahead to all of the documentation, Realia’s shareholders will have 15 days to accept the proposal or reject it. It was also during the last few days of 2014 when the Hermanos Revilla and Realia closed the acquisition of Goya, 29.

The acquired property has a surface area of 5,000 square metres for office use and 87 parking spaces. The building is currently empty and it has been purchased with a view to refurbishment, but with a guarantee from the vendor, a family group, that the new owners will receive annual rental income of €1.5 million, according to sources.

The ground floor of the building, located on one of Madrid’s most important shopping streets, is occupied by Cortefiel, but sources indicate that this asset has not formed part of the transaction closed by Hermanos Revilla and Realia, which consolidates the results of its affiliate in its financial accounts.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

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