Tag: acquisitions

Quonia To Invest €26.5M On New Purchases In Madrid & Sevilla

10 October 2017 – Eje Prime

Socimis have become one of the engines of the real estate business in Spain. And the latest to announce its plans for the next few months has been the Catalan firm Quonia, which is going to carry out a capital increase of €26.5 million to fatten up its portfolio of assets, as Eduard Mercader, Director General of the company, explained to Eje Prime. Although to date most of the group’s acquisitions have been undertaken in Barcelona, the company is now turning its focus towards new Spanish cities, such as Madrid and Sevilla.

Mercader has just taken over the role of Director General at Quonia, hitherto occupied by Enric Pérez (…). Pérez has just submitted his resignation to the Board and his position on that body has been filled by Fabian Gosselin, who holds a direct stake in the company (2.52%).

In this way, and with its renewed leadership, Quonia is starting a new phase of growth (…).

According to the company, on 20 September, the Board of Directors of Quonia approved an increase in the company’s share capital, to be carried out in two tranches. The first will be performed through an increase in the share capital for a nominal amount of €12.63 million through the issue and launch into circulation of more than 12 million new ordinary shares with a nominal unitary value of €1 “of the same class and series as the shares currently in circulation”.

“The new shares will be issued with a nominal value of €1 plus an issue premium of €1.10 per share, which results in an issue price of €2.10 per share”, says the group. The total amount of the capital increase, in the event that it is subscribed in its entirety, will amount to €26,522,574, in other words, €12,629,797 in the form of share capital and €13,892,777 in the form of the issue premium.

New acquisition horizon 

The company has decided to expand its spectrum of acquisitions to include Madrid and Sevilla (…). In March last year, Quonia, a vehicle managed externally by Rusiton XXI and specialising in real estate investment, with robust financial experience, acquired the building at number 60 Passeig Joan de Borbó, in la Barceloneta, one of the most touristy areas of the Catalan capital, for €7 million.

Following that acquisition, Quonia’s portfolio comprised six assets, located in Barcelona, Asturias and Sevilla. The Socimi made its debut on the Alternative Investment Market (MAB) in July 2016 (…).

Quonia’s plans now include “identifying strategic properties that respond to the economic sectors highlighted in our geographical scope of investment”, explain sources at the company (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

AM Locales Socimi Buys 2 Assets In Sevilla For €6.4M

9 October 2017 – Eje Prime

AM Locales has taken its first steps since debuting on the stock market. The Socimi has just carried out its first purchases since it started to trade on the Alternative Investment Market (MAB) in July. The company, which has invested €6.4 million in two assets, has also undertaken a restructuring of its bank financing, through which it will also allocate €23 million to new acquisitions over the next five years, according to a statement issued by the company.

The Socimi has recently acquired two properties in Sevilla, located at number 3 Calle San Eloy and number 4 Calle O’Donnell. Both buildings have been allocated for residential and commercial use and have a combined surface area of approximately 702 m2. AM Locates will undertake work to adapt and renovate the properties to optimise their rental potential.

The group has also recently proceeded to restructure the company’s bank financing, repaying 100% of its existing mortgage debt and short-term bank financing, which had amounted to €30 million.

The new loan, signed with Banco Santander, has a ten-year term and amounts to €53 million in total, split into two tranches. The first, amounting to €29 million, will be fully available to amortise debt, whilst the second, amounting to €24 million (…) will serve to repay the rest of the debt.

The group will, therefore, have financing amounting to €23 million with which to make possible acquisitions of new assets over the next five years. According to the group, “the mortgage guarantee is covered by company assets worth €106 million”.

AM Locales is a real estate investment company that seems to accumulate real estate assets that generate stable long-term rental income. It specialises exclusively in investing in commercial premises of all kinds: high-street premises, retail parks, shopping centres and stand-alone commercial sites with car parks.

The company specialises in managing investments and owning assets, as well as in searching for and managing tenants and the eventual divestment and rotation of properties. The company currently owns a portfolio of 40 properties, with a combined surface area of more than 40,000 m2, located in Madrid, Sevilla, Córdoba, Santander, Zaragoza and Ciudad Real.

The Socimi began its activity in 1990 and since then, has undertaken several real estate acquisitions in Spain. In July of this year,  the company joined the MAB, advised by Armabex and with BNP Paribas as the liquidity provider (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Neinor Homes Acquires 3 Plots In Valencia & Tarragona for €22.6m

7 September 2017 – Press Release

Yesterday, Neinor Homes completed the purchase of one plot of land in Valencia, which together with the acquisition of two other plots in Tarragona on Tuesday, means that the company has expanded its fully permitted land bank by c. 34,000 m2 in a matter of days.

The company plans to build 300 units on the newly acquired plots, taking the capacity of its fully permitted land bank to c. 12,000 units.

These latest acquisitions have a projected gross margin of c. 28%, which is well above the company’s targets. They were funded using the JP Morgan bridge financing announced last week.

Neinor’s total acquisitions since January now amount to €248 million, whereby fulfilling 100% of the company’s target for 2017 and 27% of its target for 2018.

The acquisitions are another indicator of Neinor Homes’ ability to anticipate the recovery in new regions, whereby strengthening its land bank in the City of Valencia and entering a new area in Cataluña: Tarragona.

Original story: Press Release

Edited by: Carmel Drake

Hispania & Barceló’s Hotel Socimi Will Make Its Stock Market Debut On Monday

21 July 2017 – Expansión

Hispania and Barceló’s hotel Socimi is on the home straight for its stock market debut. Bay Hotels & Leisure – in which Hispania holds a 76% stake and Barceló a 24% stake – will debut on the stock market on Monday after receiving a favourable report from the Alternative Investment Market (MAB)’s Coordination and Incorporation Committee. Taking into consideration the high valuation range of the report prepared by the consultancy firm CBRE, the Socimi’s Board of Directors has set a reference value of €5.29 for each one of its shares, which represents a total company valuation of €494 million. CBRE has considered that the best methodology for valuing the company is the adjusted value of the own funds after tax. This valuation also discounts the ordinary dividend of €3.5 million paid on 10 March 2017.

Holiday hotels

At the end of 2016, the company held 21 assets with a net accounting value of €790 million. Specifically, 19 hotels worth €756 million, as well as two shopping centres and the concession for a marina worth €34 million. So far this year, the company has purchased the Hotel Selomar in Benidorm (245 rooms) for €15.6 million, the Hotel Fergus Tobago in Palmanova (275 rooms) for €20.2 million and the Armadores de Puerto Rico company, which owns the land adjacent to Hotel Barceló Oasis Lanzarote, for €6.2 million.

In this way, the company currently owns 21 hotels and a total of 7,423 rooms located in established tourist areas that receive high volumes of foreign tourists. Specifically, 62% of the rooms are located in the Canary Islands, 30% in the Balearic Islands and the remaining 8% in Andalucía.

The hotels owned by Bay are leased to Grupo Barceló under a series of contracts with an initial duration of 10 years and a maximum of three extensions, with the exception of Hotel Meliá Jardines del Teide, which is leased to Meliá until 2024 (…).

Barceló constituted Bay Hotels & Leisure in July 2014 and in April 2015 signed an investment contract with Hispania whereby the Socimi in which George Soros owns a stake, undertook to acquire a majority stake. By virtue of that contract, Hispania acquired 80.5% of the share capital in October 2015 for around €119 million although, following a capital increase recorded at the end of that year, its stake was diluted to 76%.

The company closed 2016 with a turnover of €65.7 million, compared with €13.2 million last year. Moreover, during the first three months of the year, it recorded revenues of €19.1 million, up by 22% compared to the same period a year earlier.

The company’s financial result as at March 2017 decreased by 7.5% as a result of the acquisition of Hotel Meliá Jardines del Teide and, specifically, the financial expenses resulting from a mortgage loan amounting to €22 million (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Renta Corporación’s Profits Rose By 255% In H1 To €7M

21 July 2017 – Diario Vasco

The real estate company Renta Corporación has seen its profits soar by 255% during the first half of this year, to €7.1 million, up by €5 million compared to the same period last year.

During the first six months of 2017, the company closed operations in Barcelona and Madrid amounting to €142 million and launched a Socimi – listed real estate investment company – together with the Dutch pension fund APG containing residential rental assets.

In declarations to Efe, the CEO at Renta Corporación, David Vila, assessed these results “very positively”, since they confirm the strong performance of the real estate company over the last few years and allow us to forecast that the company will achieve its goal of earning €13 million in 2017 as a whole.

“Renta Corporación closed 2016 with a solid business portfolio, which gave us good visibility for this year”, explained Vila.

Specifically, the business portfolio amounted to €210.2 million at the end of June, a very similar figure to that registered in December 2016.

According to Vila, this quantity is “optimal” for its business model, given that they tend to move between €200 million and €250 million to properly carry out their activity.

During the first half of the year, the operating margin amounted to €9.5 million, double the figure recorded in the same period last year (€4.8 million).

Similarly, the real estate company has closed operations in Barcelona and Madrid amounting to €142 million, cities that Vila considers to be “the most import and most liquid” for the real estate sector and which “are leading” the recovery process.

In Barcelona, Renta Corporación closed the sale of Edificio Mercurio for €30 million as well as that of an office building on Avenida Diagonal for €7 million.

In Madrid, the company sold an office building on Calle General Moscardó for €5.6 million as well as that of a residential property on Calle Jorge Juan for €8.4 million.

The director also highlighted the good results obtained by the Socimi that Renta Corporación has created together with APG, which has committed share capital of €130 million.

He said that the company has recorded “strong activity”, given that it has made its first purchases amounting to €25 million in the Madrilenian municipalities of Navalcarnero and Rivas-Vaciamadrid and will undertake new acquisitions over the next few weeks.

The CEO forecasts that the Socimi will make “significant” contributions as its activity increases, even though it currently represents a small proportion in comparison to the real estate company’s overall result.

Renta Corporación closed the first half of the year with a share price of €2.84, which represents a 55% increase compared to the figure recorded at the end of last year (€1.84).

Original story: Diario Vasco

Translation: Carmel Drake

Hispania To Invest €650M Ahead Of Company Sale In 2020

3 May 2017 – Expansión

Hispania is getting ready to embark on a new phase. The Socimi in which George Soros owns a stake wants to update its hotel portfolio, by purchasing new assets and reposition its existing properties, with the aim of preparing the company for sale, which must happen before March 2020 – the date on which the company will celebrate its sixth anniversary of trading on the stock market.

The company plans to invest €400 million in new hotel acquisitions, which it will undertake, for the most part, before September, including an establishment in Mallorca with 250 rooms that is expected to be completed soon and which will turn it into the largest hotel owner in Spain and the third largest group in Europe behind Pandox and Foncière des Murs.

The group has 38 hotels and 11,000 rooms. The gross asset value (GAV) of its hotel portfolio amounts to €1,257 million, according to the most recent valuation performed by CBRE.

Similarly, the company will spend €250 million on the repositioning and renovation of its portfolio. This investment effort will be undertaken primarily in 2018. The group will finance this investment using its own capital and through debt.

In this way, the managers seek to have Hispania ready by the first quarter of 2019 to prepare it for its sale. The Socimi is considering selling off the whole company – excluding its offices and homes – through a transfer of control, rather than by selling off the assets individually or in batches.

The entry of Soros into the group’s most senior management body, following the incorporation of Benjamin D. Barnett, analyst at Soros Fund Management UK Management LLP, into the Board, will facilitate contact with international investors interested in the company, according to sources in the market.

In addition to its hotel portfolio, the Socimi managed by Azora also owns 27 office buildings, worth €520 million and measuring more than 185,000 m2, as well as a portfolio of homes comprising 750 units worth €230 million.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Orion Launches €1,500M Fund & Plans Its Return To Spain

3 May 2017 – El Economista

Orion Capital has raised €1,500 million for its fifth real estate fund, which is dedicated to purchasing assets across Europe. According to sources in the sector, the Dutch fund has placed its focus on Spain, where it plans to spend some of that money. “It has not set itself a fixed objective, but Spain is a country that is very attractive”, confirm the sources.

The fund used to own a significant portfolio of assets in Spain, nevertheless, between 2014 and 2015, it completed the divestment of the last properties that it owned and maintained only its stake in Sotogrande, which it owns jointly with Cerberus.

Now, Orion wants to restore its presence in the country and to that end, it is looking for high value-added operations, including renovations and new developments. According to the sources, the fund, founded by Aref H. Lahham, Van J. Stults and Bruce C. Bossom, also wants to increase its exposure to Spanish real estate in an indirect way by acquiring stakes in companies in the sector and by purchasing debt.

Orion’s interests span almost every segment of the market. In the case of offices, the fund will concentrate its efforts in Madrid and Barcelona, looking at both refurbishments and new developments. To acquire shopping centres, it will expand its geographical range and will analyse operations in smaller cities as well. In that case, the fund will only participate in a project under development if it is in an advanced stage, where no planning is required. “Everything should be ready to build”, explain the sources, given that the manager has a team of just three people in Spain. The hotel segment is also on its radar, as well as logistics, in which “it will probably operate by constructing new spaces”.

During its previous phase of intense activity in Spain, Orion starred in several major transactions, such as the purchase of the Plenilunio shopping centre (Madrid) in 2009 for €235 million, which it then sold in 2015 for €375 million. Similarly, it completed a high-profile divestment when it exited Puerto Venecia, in Zaragoza, by selling the largest shopping centre in Spain to Intu for €451 million. Orion hopes to start buying assets in Spain once again before the end of the year.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Neinor Buys 7,000m2 Plot Of Land In Valencia

5 April 2017 – Expansión

Neinor Homes is stepping on the accelerator and strengthening its presence in Spain by entering a new region. The property developer – which debuted on the stock market on Wednesday 29 March –  has completed the purchase of its first plot of land in Valencia, with a buildable surface area of 7,000 m2, where it will construct 54 homes. This acquisition allows the company, which is controlled by the US fund Lone Star, to expand its operations to Valencia, where it is considering opening a local office.

According to the company, the market in Valencia displays the characteristics that it demands for its investments: a shortage of structural supply, a lack of competition, positive population growth and unsatisfied demand. For this reason, it is looking for “new opportunities in the city”.

Since the beginning of January, the company has invested €51.5 million in the purchase of buildable land in Sitges, Gerona, Sabadell, Mairena de Aljarafe (Sevilla), Sazares (Málaga), Madrid and Valencia. These plots will allow the developer to build more than 700 homes on almost 90,000 m2 of land.

The CEO of Neinor, Juan Velayos (pictured above), said that the purchases made during the first quarter place the company on the road to exceed its annual objective in terms of acquisitions, set at €200 million. “It is a confirmation that we are still able to buy carefully selected plots of land from non-natural landowners, such as banks and companies without any development activity”.

In this way, sources at Neinor underlined that each one of these operations exceeds the profitability objectives set by the property developer and that they were closed only after rigorous legal, technical and commercial due diligence had been completed.

The firm has 1 million m2 of land in its portfolio, with a gross value of €1,120 million, on which it plans to construct more than 9,000 homes.

At the end of February, the company had 60 active developments – already started or planned to be launched – in País Vasco, Madrid, Cataluña, Andalucía and the Community of Valencia, on which it plans to construct 4,002 homes.

The property developer plans to reach cruising speed in 2020, with the completion and delivery of between 3,500 and 4,000 homes per year.

The company, which plans to announce its results on 26 April, closed last year with revenues of €228.6 million and a gross operating profit (EBITDA) of €9.6 million.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Axiare Launches €96M Accelerated Capital Increase

8 March 2017 – Expansión

Late Tuesday, Axiare Patrimonio launched an accelerated capital increase, aimed at qualifying investors, which will see it issue securities representing 10% of its share capital and worth €96 million, according to a statement made by the Socimi.

The operation will result in the dilution of the 15% stake that Colonial holds as the Socimi’s largest shareholder, given that the operation will be carried out without any preferential subscription rights, in other words, without reserving any of the securities for Axiare’s current investors.

In addition, the placement firms behind the operation have been entrusted with the job of “making a selection” from amongst the requests for new shares that they receive from investors, before awarding the new securities.

Colonial’s investment has never been welcomed by Axiare, which regards Colonial as a competitor. In addition, following the real estate company’s entry into its share capital, the Socimi’s Board of Directors engaged independent legal experts to “analyse the different consequences that this operation could have for the Socimi”.

Nevertheless, Axiare is adamant that the aim of the capital increase is to raise funds to buy new buildings, which it will add to its real estate portfolio in the short term, as well as to incorporate new investors into the business, expand its free floating stake and increase its liquidity.

By virtue of Axiare’s capital increase, it will issue 7.19 million new shares, equivalent to 9.99% of the Socimi’s current share capital, worth €95.9 million on the basis of the company’s current market prices. The firm closed trading on the stock market on Tuesday at €13.350 per share.

Financing new asset purchases

The Socimi led by Luis López de Herrera-Oria is looking to raise funds to undertake new property purchases and whereby continue to increase its portfolio, despite the fact that so far this year it has already closed three acquisitions for a combined total of €140 million.

Currently, Axiare owns a real estate portfolio worth €1,400 million, of which 74% comprise office buildings.

Nevertheless, the Socimi is currently analysing potential asset purchases worth €1,100 million, of which properties worth around €400 million worth are in advanced stages of negotiation and are close to being acquired.

Original story: Expansión

Translation: Carmel Drake

Alpha 2: Colonial Invests €400M In RE In Spain & France

7 February 2017 – Expansión

On Monday, Colonial, the second largest real estate company in Spain (after Merlin Properties) unveiled its new strategic plan, known as Alpha 2. Under this plan, the company has invested €400 million in four operations: three in Spain and one in France (Paris). The group has opted to undertake operations to reposition its assets. In this way, it will allocate €250 million to property acquisitions this year and the remainder will be spent on renovation work.

The group will invest €51 million on an office building on Paseo de la Castellana, 163, which has a surface area of 11,000 m2. The property is currently occupied and will be renovated floor by floor, as the current tenants vacate the property.

In Barcelona, the group has acquired the headquarters of Fundación Bertelsmann, on Travessera de Gràcia, 47-49. The operation, including the remodelling work, amounts to €41 million. On the other hand, Colonial will spend €32 million to build a new office tower in Plaza Europa, number 46-48. This operation will be performed through a joint venture with the perfumery and fashion group Puig. The future building will be located opposite the Catalan company’s current headquarters.

Finally, the fourth operation involves the acquisition of a building at number 112-122 Avenida Emile Zola in Paris. In total, the group will spend €245 million on this purchase, in an operation that was announced a few weeks ago.

This plan complements another one, executed last year, known as Alpha, which initially planned to make investments amounting to €400 million, but in the end spent more than €500 million.

Its purchases included the acquisition of 15% of the Socimi Axiare’s share capital. The company led by Pere Viñolas (pictured above) spent €135 million to become the largest shareholder of that listed company, which debuted on the stock market in the summer of 2014 and which has been setting itself up as one of the main owners of office buildings in Madrid and Barcelona – it has very similar portfolio to that of Colonial.

Currently, Colonial owns 59 properties in Paris, Madrid and Barcelona, with a combined value of €7,543 million, according to the most recent estimates, performed as at 30 June 2016. Its most recent acquisitions include several office buildings, such as IBM’s headquarters in Madrid, located on Calle Santa Hortensia, worth €154 million. The Mexican group Finaccess (former owner of the Modelo group, the manufacturer of Corona beer) sold that property, along with another building on Calle Serrano, in exchange for a stake in Colonial.

Alpha also included the purchase of a 4.4% stake in the French firm SFL, which the Reig family sold for €106 million.

During the 9 months to September 2016, the real estate company in which the Sovereign fund of Qatar, Finaccess and Villar Mir hold stakes, generated revenues of around €205 million, up by 21% compared to the same period in 2015.

During the same period, Colonial earned €249 million, up by 17%, whilst its level of indebtedness (LTV) amounted to 40.3%. Just three months ago, the real estate company carried out a bond issue amounting to €600 million.

Original story: Expansión (by G. Trindade and R. Ruiz)

Translation: Carmel Drake