Torreal in Talks With FCC & Bankia on Purchase of Realia Patrimonio

30/10/2014 – Expansion

Investment vehicle of the Abello family, Torreal, has started negotiations with FCC and Bankia, two majority stakeholders of Realia, on possible acquisition of the property arm of the listed company, Patrimonio.

Torreal’s bid arrived at the moment when the sale of the 55.95% controlling stake held by the builder and the bank was in the deadlock. At the end of 2013, Goldman Sachs was named to coordinate the process and it received offers from Orion, AEW , Cerberus and even from Pontegadea, the real estate firm of Amancio Ortega.

The Bids

Finally, only three offers have been accepted. On one hand, the one submitted by funds King Street and Fortress that, after buying 60% of Realia’s debt from Santander and Sareb, seek swapping the liabilities for a stake in the firm.

Next bid arrived from another large real estate company listed on the stock exchange market: Colonial, which offered €650 million for Realia Patrimonio only, excluding the housing and land business and setting several conditions and a deadline for negotiation: July 31. Colonial claims the bid has not been refused but the process ceased.

Few days ago, Torreal joined the auction. Alike the Colonial’s offer, the bid of the Abellos targets only the offices of Realia Patrimonio (more than 70 units), including company Hermanos Revilla. However, sources close to the family office suggest the offer might be extended to the entire firm.

Portfolio of the property manager includes such gems as the Torre Kio skyscraper in Madrid, as well as several shopping malls, finished residential products and developable land.

Last year, Torreal submitted another bid for Colonial itself. Eventually, it was Juan Miguel Villar Mir who bought the company from hands of banks and injected more than €300 million in it.

At the end of 2013, Realia’s assets were worth €3.38 billion in total with 45% proceeding from France. In May, the Spanish property manager sold its share in Siic de París and thereby cut its debt half.

In the first half of the year, Realia earned €53.9 million and lost €18.5 million. Its shares trade at 1.05 Euros each.


Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE