World´s Giant Pimco Buys 12% of Lar´s Socimi

17/02/2014 – El Confidencial

One of the greatest fund manager in the world, the U.S. Pimco, has just officially pledged investing at least two billion Dollars managed in Spain. Precisely, in the real estate sector. The California-based firm became an anchor investor for the real estate investment company (Socimi) listed last week by Grupo Lar.

According to the listing bulletin delivered to the CNMV, the manager company chaired by Bill Gross promised to acquire 12.5% of the representative shares of the REIT firm promoted by Lar. Pimco might disemburse up to €50 million (…).

The support will possibly encourage other investors to gamble on the Socimi. In order to facilitate the listing process, the Pereda family hired JP Morgan advisor and Linklaters law office. Both managment team and the anchor investor have the sales of their shares locked-up for 270 and 180 days, respectively.

As the official documents show, the target of Lar España Real Estate is to lead real estate investments in Spain to an end, mainly if it comes to the tertiary property, like office buildings in Madrid and Barcelona and shopping centers, let alone industrial plants for commercial use. Moreover, the company could invest up to 20% of its cash budget into residential assets on the Spanish market.

The Peredas commit to achieve up to 12% profitability for Pimco and future investors. (…).

 

Original article: El Confidencial (Carlos Hernanz)

Translation: AURA REE

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