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Värde Buys Aelca From Avintia For €50M

28 June 2016 – Alimarket

The US investment fund Värde Partners is continuing to pursue its strategy to become a key player in the revived Spanish property market. Within a week of acquiring the property developer Dospuntos – the new face of the former real estate arm of the construction group San José – it has closed the purchase of the real estate arm of another major Spanish construction company.

As such, Värde will pay almost €50 million to acquire 75% of the share capital in Aelca Desarrollos Inmobiliarios, the company that undertakes the residential business of the construction group Avintia, which the group chaired by Antonio Martín Jiménez put up for sale at the beginning of the year.

Aelca, created in 2012, has proven itself to be one of the most active property developers in the Community of Madrid, with a portfolio of more than a dozen new build developments under construction, which together contained around 1,000 homes at the beginning of the year. Aelca, which is dedicated to the development, marketing and management of homes, recorded turnover of €9.91 million in 2014, although it was forecast to generate revenues of around €70 million last year, thanks to the completion of more than 200 homes. Aelca’s workforce comprises 17 employees.

Following the sale of Aelca, the Avintia group, headed by the construction firm Avintia Proyectos y Construcciones, which has been responsible for executing Aelca’s developments to date, will now be able to focus its activity on the construction sector, where it is one of the most important residential construction companies in the country, by turnover, as well as in the areas of facilities services, retail, hotels and tertiary development, commercial and logistics. Avintia was forecast to generate revenues of €259 million in 2015, with 770 employees on its payroll and trade volumes of more than €423 million.

Värde Partners manages more than $10,000 million in assets around the world and it has starred in some of the most significant real estate transactions in Spain in recent years. As such, in addition to its acquisitions of the real estate arms of the San José and Avintia groups, it has also joined forces with the fund Kennedy Wilson to acquire the real estate platform Aliseda from Banco Popular.

Original story: Alimarket

Translation: Carmel Drake