14 April 2015 – Press Release
After the successful completion of the due diligence process and in accordance with the agreed plan, Hispania Activos Inmobiliarios, S.A. has communicated to the Spanish Stock Market Regulator, CNMV, that its 100% subsidiary company, Hispania Real SOCIMI, S.A.U., and the Barceló Group have signed an agreement to define the terms of their joint venture, which has been established to allow the two companies to continue investing in hotel resorts in Spain. The terms of the agreement respond to those set in the framework agreement dated 24 February 2015.
According to Concha Osácar, Board Member of Hispania, “signing this agreement implies the formalisation of an investment that will be key for Hispania, considering the significant cash flow generation expected from the vehicle in the short term.”
According to Raúl González, CEO for EMEA at Hoteles Barceló, “this agreement will be key to enabling growth in the most important tourist areas in Spain”.
The main aspects of the agreement signed between Hispania and Barceló
On 24 February 2015, Hispania and Barceló announced a framework agreement for the creation of a JV, through which Hispania will acquire 11 hotels (3,946 keys) and 1 small shopping centre during the initial phase, with the option to acquire 5 additional hotels (2,151 keys) along with a second small shopping centre at a later date.
Once this transaction has been completed and the option for the 5 additional hotels has been exercised, Hispania will have invested circa €340 million, to obtain an 80.5% stake in the new joint venture. Grupo Barceló will maintain a 19.5% stake, with the option of acquiring up to 49% through future capital increases.
Barceló will continue to operate the hotels, which have been acquired by means of lease contracts for an initial period of 15 years.
The agreement signed by Hispania and Barceló will allow the JV to launch its ambitious plan to increase the portfolio of the new REIT, by means of acquisitions or further asset contributions. The goal is to, at least, double the size of the portfolio, creating a Spanish resort hotel portfolio with assets managed by diverse leading operators in this market.
Original story: Press release
Edited by: Carmel Drake