Testa to Invest Another €500M Buying Up New Homes for Rent

20 April 2018 – Eje Prime

Testa is continuing to grow ahead of its stock market debut. The company is going to invest €500 million in its growth through the purchase of new homes to rent. These new assets will be added to the 10,700 homes that the Socimi already owns, a portfolio worth €2.3 billion that makes it the largest rental home company in the country.

This new investment forms part of the company’s preparations to make its stock market debut, according to Expansión. The leap onto the public market is going to be carried out through a double operation: a public offer for sale (OPV) and a public offer for subscription (OPS) of new shares, both aimed exclusively at institutional investors.

Testa is currently owned by: Santander and BBVA, which hold stakes of 37% and 26%, respectively; Acciona, which acquired 20% of its share capital in exchange for contributing a portfolio of homes; and Merlin, which holds the remaining 17%.

The Socimi is focusing its expansion on the purchase of entire blocks of apartments in the metropolitan areas of Spain’s main cities, including Barcelona, Palma de Mallorca, Pamplona, San Sebastián as well as Madrid, which already accounts for 65% of its current portfolio of homes.

Original story: Eje Prime 

Translation: Carmel Drake

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