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Testa Residencial: Undisputed Leader Of Rental Home Market
31 July 2017 – El Mundo
Testa Residencial is becoming even stronger in the rental home market. The company has approved a €341 capital increase, which is going to be financed through Acciona’s contribution of 1,058 homes, concentrated in 10 buildings located primarily in Madrid, as well as by the contribution by a third party of another 43 units.
In a clear bullish market, with an increasingly higher penetration of rental properties, Testa Residencial is currently the market leader and looks set to become the brand of reference in the sector. The firm is continuing with its strategic plan to grow its portfolio of high-quality assets with the capacity for improvement through management, as well as to optimise the returns from its existing portfolio.
The stock of homes to be contributed by Acciona are characterised by their high quality – 95% of them are located in Madrid; 849 homes are located in Parque Conde Orgaz and 85% of them are unsubsidised properties.
This residential portfolio has an occupancy rate of 94%, generates gross annual income of €12.5 million, has a gross valuation of €400 million and a net asset value of €336 million. It is one of the highest quality portfolios on the Spanish market.
Following the contribution, Acciona will own a 21% stake in Testa Residencial. The other shareholders include Santander (35.7%), BBVA (26.9%), Merlin Properties (12.7%), Popular (3.1%) and others (0.6%).
51% of the homes are in Madrid
After the General Shareholders’ Meeting, which has been convened for September, has approved the capital increase, Testa Residencial’s portfolio will comprise 9,041 homes (concentrated in 118 buildings), of which 51% will be located in the Community of Madrid.
The portfolio’s gross annual income will exceed €70 million, the gross value of the company’s assets will amount to €2,179 million and the net asset value will equal €1,8016 million. Testa Residencial has a very conservative level of indebtedness (17%).
Original story: El Mundo
Translation: Carmel Drake