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Santander Will Sell 4% of Metrovacesa to Blackstone

11 December 2017 – Eje Prime

The real estate sector promises to end the year in style. As part of the sale of the €30 billion in toxic assets to the US fund Blackstone, Santander is also going to sell a 4% stake in Metrovacesa, the property developer set that is set to star in the major IPO of 2018, according to sources close to the operation.

Specifically, the US fund has acquired 51% of the share capital of the new company to which Santander is going to transfer all of those toxic assets, whilst the entity chaired by Ana Botín will retain control over the remaining 49%, according to El Confidencial. The agreements signed to this effect include one to transfer a stake in Metrovacesa to the new vehicle.

The property developer led by Jorge Pérez de Leza plans to make its debut on the stock market in February, with assets worth around €2.6 billion. This move will be subjected to a vote at the General Shareholders’ Meeting on 19 December.

Moreover, the company has just signed a €275 million loan to boost its property development plan. With this financing, the property developer is seeking to optimise its capital structure and give viability to its business plan for the next few years, which forecasts the delivery of around 5,000 homes per year from 2020 onwards. Moreover, the plan aims to position Metrovacesa with a land portfolio worth €2.6 billion.

This new financing arrangement has a five-year term, according to the company, which plans to launch around 4,000 housing units in 2018. Metrovacesa will primarily use the loan to ensure the urban development of some of its land portfolio and the launch of certain residential projects.

Original story: Eje Prime

Translation: Carmel Drake