Soros & Paulson Gamble on Spanish Real Estate Market

04/03/2014 – ExpansionPro

George Soros and John Paulson are buying large stakes at Spanish groups´flotation. That proves the growing trust among investors in the economic recovery of the country.  The two great hedge fund managers – the first and the fourth in the world in the total profits gained in 2013 ranking – have acquired the stakes for €92 million in Hispania Activos Inmobiliarios.

Last week, Hispania declared a plan to launch a public value offer containing the remaining shares and by now it has already raised a considerable part of the foreseen €500 milion through the down payments. The documents are awaiting approval.

Investment Fund

Hispania will become listed on the Madrid´s Stock Market as a real estate investment trust (REIT), specialized in property with growth margin, especially in main cities. It aims at offering an annual yield of two numbers for 6 years. The trust will be managed by Azora.

If successful at the takeover bid plan, Hispania will become the second real estate group listed on the Stock Market since the recession began. Two weeks ago, Lar España was registered as a pioneer and raised €400 million.

The real estate assets in Spain, after losing one third of their value from 2007 through 2013 as the ECB told, become more and more popular among investors, mostly due to improvement on the British and the Irish markets. Investment in Spanish property doubled in 2013 in regard to the previous year and represented €2.700 million, according to the data from Cushman & Wakefield. 

Takeover Bids

(…) The news on the investment of the hedge fund managers  in Hispania arrives in the moment of increased gambling on the south of Europe. Funds related with Soros invested in indebted Spanish construction company FCC last month, while Paulson invested in Greek banks in autumn.

Original article: ExpansiónPro (Kate Allen/Miles Johnson)

Translation: AURA REE

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