26/05/2014 – Expansion
Old savings banks are giving the finishing touch to the sale contract for their great hotel project. The operation to be conducted through Azora Gestión, is said to involve between €45-50 million.
Carey Value Added fund embraces ten hotels (1.714 rooms) managed by specialist companies in New York, London, Washington, Berlin, Colonia, Geneva and Brussels. Some of the big name operators that worked with the group are Marriot, Steigenberger, NH, Hotusa or Barceló. The fully-invested vehicle´s own funds reach €206 million and it has by now carried out €415 million investments.
Azora, private equity manager with expertise in the real estate was awarded management and restructuring of a €261 million debt of the vehicle.
Facing the risk of insolvency, Azora started negotiations with Liberbank, Bankia and CaixaBank (which held 35% of the indebtness) on possible refinancing. The manager aims at raising €20 million in new equity.
CaixaBank, that inherited a 27% stake from Banca Cívica, and Unicaja-España-Duero with 26.7% are the main shareholders of Carey, followed by Ibercaja-Caja3 (9.7%) and BMN (6.2%). Also, Kutxabank, NCG, Bankia, Liberbank and Ahorro Corporación have a share in Carey.
In 2007, the savings banks merged with hotel magnate César Losada and created the Losan Hotels World fund, later called Carey, with foreseen investment of €1.2 billion. However, the project brought large losses and Losada was brought into a trial for fraud.
Together with the sale, the savings banks will shed a €6,8 millon worth of Losan Hoteles, another hotel fund launched with Losada.
Original article: Expansión (by Elisa del Pozo)
Translation: AURA REE