Soros Commits To Back Hispania’s Future Capital Increase

6 May 2016 – Cinco Días

The Socimi Hispania is considering carrying out another capital increase, of up to €250 million, and the multimillionaire George Soros (pictured above), the company’s largest shareholder with a 16.7% stake, has expressed his intention to participate.

According to a statement made yesterday to the CNMV, on the occasion of Hispania’s general shareholders’ meeting, the company, which debuted on the stock exchange in March 2014, is in advanced negotiations regarding investment operations amounting to €200 million.

Hispania is looking for new resources to make acquisitions, “now that it has committed almost all of its investment capacity”. The Socimi already raised €337 million in a previous capital increase in Spring 2015, which Soros Fund Management participated in.

“Our main investor has expressed interest in supporting the operation”, said sources at the Socimi in a document to the CNMV. In this way, the fund managed by Soros would contribute around €42 million to avoid the dilution of its stake.

For 2016 as a whole, Hispania, which is managed by Azora, expects to generate significant growth in its results across its different investment lines (hotels, offices and residential). The company already part-owns the Socimi Bay, in partnership with Barceló, which specialises in the hotel sector.

“The window of opportunity is mainly opening in the holiday hotel sector in Spain, which is still offering a very attractive risk-return profile”, said the Socimi, led by Concha Osácar and Fernando Gumuzio, in the document.

Original story: Cinco Días (by A.S.)

Translation: Carmel Drake