15 December 2016 – Press Release
The Boards of Directors of the Socimi Vitruvio and Consulnor Patrimonio Inmobiliario (CPI) have agreed to submit plans for a merger between the two companies to their respective General Shareholders’ Meetings.
The resultant company, which will operate under the Vitruvio name, will manage a real estate portfolio worth approximately €90.5 million, according to the Socimi whose shares are listed on the MAB. The new company can expected to generate gross revenues from rental income of €5.3 million in 2017.
The aim of the merger is to generate value for the shareholders of both companies. Vitruvio will contribute better locations and its core renovation business, as a lever for creating shareholder value. Vitruvio will also reduce CPI’s indebtedness and therefore lower the risk for its current shareholders. Meanwhile, CPI will contribute a portfolio with a greater capacity to generate revenues, which will improve Vitruvio’s current dividend. Overall, the larger vehicle will be very attractive for a wider range of investors.
Original story: Press Release
Translation: Carmel Drake