Ayco Plans To Raise Up To €100M Through A Capital Increase

21 November 2017 – Expansión

The property developer Ayco plans to carry out a capital increase amounting to between €50 million and €100 million to allow new investors to acquire shares and to accelerate its business plan for the next few years. “We would like to carry out this capital increase, which has been authorised by the General Shareholders’ Meeting, at some point in 2018. For us, it will represent our definitive return to the market”, explained the firm’s President and CEO, Francisco García Beato.

Ayco is the oldest listed real estate company in Spain. The property developer, founded in 1941, with the name Inmobiliaria Alcázar and in which the Valencian businessman Onofre Miguel held a stake at the time, was one of the many victims of the real estate crisis that took hold in 2007. The property developer went on to complete a restructuring process, involving the transfer of some of its assets to Sareb at the end of 2014, and several months later, it welcomed the entry of new investors, including Alpha Moonlight, amongst others.

“After successfully completing the restructuring process, the company, which is currently listed on the “open outcry market”, is the ideal vehicle for investors looking for transparency, governance and to make their investments liquid through the stock market”, added García.

Ayco, which has own funds amounting to €8 million and a market capitalisation of €26 million, is currently working on a property development project in Palma de Mallorca, involving the construction of 24 homes on independent plots. It also owns a plot measuring 25,733 m2 between the municipalities of Gibraltar and La Línea de la Concepción, where it is building a four-star hotel with 250 rooms.

Hotel Byblos

In addition, last year, Ayco purchased Hotel Byblos (in Mijas), one of the most iconic establishments on the Costa del Sol in its heydey, for €9.75 million. This hotel, which has been closed for six years, used to be owned by the property developer Aifos, which filed for insolvency in 2009. Following a comprehensive renovation, the company plans to reopen the hotel – which will have 288 rooms, of which 65 will be newly built luxury suites – in the summer of 2019.

To this end, the firm is currently holding negotiations with hotel operators interested in participating in the project, from both a management and financing perspective. “Having a significant volume of resources tied up in a single asset has an opportunity cost. The ideal scenario would be for us to identify an operational and financial partner that would allow us to retain control and in turn participate in the generation of value for the project”.

García revealed that Ayco is negotiating with one international chain that does not currently have a presence in Spain and one Spanish hotel operator. In both cases, the partners work with real estate investors.

Ayco also owns land with a buildable surface area of 85,000 m2 in Málaga, Sevilla and Cádiz, where it plans to build around 800 homes. Moreover, it is evaluating operations to buy plots for the construction of another 1,000 homes in Andalucía, the Balearic Islands, Madrid and the north of Spain. Specifically, it plans to spend €15 million on the execution of those purchase opportunities.

The company will close 2017 with a turnover of around €5 million and a net profit of €500,000. It expects to generate earnings of €10 million in 2018 and of up to €24 million in 2022.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Ayco Buys Hotel Byblos In Mijas For €60M

26 September 2016 – Real Estate Press

As a result of this operation, Hotel Byblos hopes to restore its reputation as a luxury establishment in the health and family tourism sector, focused on the world of golf.

Ayco’s representatives have communicated that the real estate group plans to completely rebuild the property, which houses one of the largest five-star luxury hotels on the Costa del Sol. They plan to retain the hotel’s characteristic features, as well as incorporate new elements, such as a health and beauty area.

The five-star Hotel Byblos Hotel is an icon of the tourism industry on the Costa del Sol, since many internationally famous personalities have passed through its facilities, including the mythical Rolling Stones and Lady Di, amongst many others.

The establishment, opened in 1986, achieved enormous international fame as an icon of high quality tourism until it was acquired by the real estate group Aifos, which then led it to ruin, until its closure on 31 May 2010. In 2009, the British magnate Lord Sugar, founder of the mythical information technology company Amstrad, acquired the hotel and considered the possibility of reopening it in 2013, but that did not end up happening.

Original story: Real Estate Press

Translation: Carmel Drake

Foreign Investment Fund Offers €16.1m For Guadalpín Hotels

19 February 2015 – Diario Sur

The transaction could amount to almost €60 million in total, since Caixabank would cancel most of the sizeable debt that Aifos has with the entity.

The turbulent history of Guadalpín hotels is beginning a new chapter. Whilst the property developer Aifos, which constructed these luxury facilities, is immersed in a process to approve its liquidation plan to proceed to bankruptcy, a foreign investment fund is looking to take advantage of the opportunity by placing €16.1 million on the table to purchase the majority of the two properties, but without taking on their management. The administrators have already agreed the deal with the fund, in principle, but the transaction must be authorised by Commercial Court number 1 in Malaga, which is conducting the bankruptcy proceedings.

The offer has been presented by Lumitran System, a company controlled by foreign investors, mainly Swiss and Central European, which has set its sights on the hotels. The offer for the property in Marbella, which is located on the Golden Mile (Milla de Oro) has been made for the common areas of the building, which belong to Aifos, as well as other spaces, such as the ground floor, which houses the swimming pool, reception and garage; the apartments (in the property) are owned by another party.

In terms of the facilities in Guadalpín Banús, the investors are looking to purchase the apartments and other spaces, such as the reception, kitchen and the shops in the building. Despite this, the proposal does not provide for the operation of the hotels, which depend on other companies.

In exchange for the specified consideration, Lumitran System, would also take ownership of other items. One of the most symbolic would be the Guadalpín brand. And another, with more financial opportunities, is a plot of land known as the Village, which is situated just behind the hotel in Puerto Banús, which was reserved at the time for a potential future expansion. These are the targets of a transaction that, although require a pay-out of €16.1 million (by the investors), would generate significantly more profit for a company that does not find itself in the same situation as Aifos, which would see its debt of €59.1 million eliminated in a stroke.

The offer explains that the developer holds debt with the entity Caixabank amounting to €51.6 million, in the form of mortgages over the hotels Guadalpín Banús and Marbella. Nevertheless, the entity would forgive this amount entirely in exchange for a cash payment of €9.4 million and its complete dissociation from Aifos, which Lumitran has committed to.

In addition to this payment to the banking entity for the facilities, Aifos would also receive a cash payment itself. Specifically, Lumitran would pay €2.5 million directly to the developer. Another party that would benefit from this transaction is the Town Hall of Marbella. In their offer, the investors commit to taking over the obligations that Aifos holds with the Town Hall regarding the administrative normalisation of the urban situation of the Guadalpín complexes in Banús and Marbella. According to recent estimates, that would amount to €3.6 million in the case of the Village plot alone. Moreover, the municipal’s coffers would also receive funds from the investors in the form of tax revenues, such as property tax (impuestos de bienes inmuebles or IBI) and garbage tax, which have not been paid in recent times. These payments by Lumitran System would exceed €600,000.

Agreement with the bank

This proposal, which has already been agreed between the investors and Caixabank, is now in the hands of the Commercial Court number 1 in Malaga, which is conducting Aifos’ bankruptcy proceedings. The bankruptcy administrators processed the offer a few days ago and now the period has begun for its assessment, as well as for the presentation of new offers in the event that other parties are interested in acquiring the assets from the developer, which filed for liquidation in October last year.

In a letter, the bankruptcy administrators ask the court to authorise the proposal so that the sale of the aforementioned facilities in the Guadalpín hotels may go ahead. They assure that this transaction would result in “enormous benefits” for the parties affected by Aifos’ bankruptcy. And that the deal would amount to almost €60 million in total. There would be some direct revenues,  €16.1 million (€2.5m for Aifos, €9.4m for Caixabank and another €4.2m for the Town Hall of Marbella), although the most significant amount would involve the cancelation of Aifos’ debt by Caixabank.

In their request to the courts, the administrators also highlight the importance of this purchase being agreed “as soon as possible” to avoid any further accumulation of debt by both the Costa del Sol Town Hall and the bank.

Original story: Diario Sur

Translation: Carmel Drake

Aifos Refused Covenant & Sentenced to Liquidation

3/11/2014 – Cinco Días

Once reigning in Andalusia, Aifos has not come to an agreement with lenders and as a result the bankruptcy process it has been undergoing since 2009 will end up with liquidation.

According to the group’s president Jesus Ruiz-Casado, the sentence has arrived too soon as reports and business valuation had not been finished yet. Among the creditors one may find Aifos’s homes owners, banks, Treasury and Sareb.

The businessman tried to pull his company out of insolvency with help of Emilio Noseda, who was ready to take Aifos over and inject necessary equity if the lenders agreed for another covenant.

Founded in 1994, the firm went bankrupt with €1 billion in liabilities. It built 18.000 houses in total, employed 2.600 workers, had 53 branches in four countries and a 4.700 network of real estate agencies all over Europe. In 2005, Aifos was at the brink of going public but an affair with its executives in the main role shattered the plans. Three years later, the company joined other insolvent property managers like Tremon, Sacresa, Nozar or Llanera.


Original article: Cinco Días (by Alberto Ortín Ramón)

Translation: AURA REE