Socimi Vitruvio Signs €19M Loan With Abanca

5 December 2017 – Eje Prime

The Socimi Vitruvio has paid off an outstanding debt with a new loan. The company has subscribed a financing contract amounting to €19 million with Abanca. According to explanations provided by the group, the funds will be used to repay the debt resulting from the merger by absorption of Consulnor.

The debt assumed following the merger with the real estate company Consulnor amounting to €12.7 million will be paid off thanks to this new loan. The Socimi will also proceed to cancel the line of credit granted by Banco Santander amounting to €4.6 million.

The new loan with Abanca has a two-year grace period (until 30 November 2019) and a monthly repayment schedule of 14 consecutive instalments. The interest rate that Vitruvio will pay will be fixed at 1% during the first year, before rising to 1% plus 1-year Euribor from November 2018 onwards. The loan is due to mature in December 2031.

At the end of 2016, Vitruvio and Consulnor Patrimonio Inmobiliario (CPI) signed a merger agreement whereby CPI, a real estate investment vehicle created by Consulnor (the manager in which Banca March holds a 48% stake), transferred its assets to the Socimi in exchange for shares.

After closing the operations involving CPI and Madrid Rio, Vitruvio plans to undertake new investments amounting to more than €30 million this year.

Original story: Eje Prime

Translation: Carmel Drake

Vitruvio Completes Its Merger With Consulnor

25 September 2017 – Eje Prime

Vitruvio has completed its corporate operation. On 13 September, the Socimi finalised the merger by absorption of Consulnor Patrimonio Inmobiliario, as agreed at the General Shareholders’ Meeting in June. In this way, Consulnor Patrimonio Inmobiliario has transferred all of its assets to Vitruvio, according to sources at the company. Following this change in structure, the Socimi will see its revenues soar next year to €6 million and its Board of Directors will change.

Following the merger, Vitruvio will manage a portfolio of real estate assets with a gross value of €103 million and will generate an estimated turnover of €5.2 million for this year. Thanks to the new assets, the company will have greater capillarity in the country and a more diversified portfolio of properties; it will also see an increase in its average profitability.

According to both groups, the operation will result in growth in terms of gross assets of almost 70%, “with a significant increase in revenues and profitability for shareholders”. Moreover, the company has highlighted a series of advantages that the merger of the two groups generates, including an increase in the shareholder base.

“The incorporation of Consulnor Patrimonio Inmobiliario brings with it the entry of around 70 new shareholders to the Socimi’s structure, including some institutional players, which means an increase in the marketability of the shares”, say sources at Vitruvio. Another key to the merger, according to the company, is the increase in turnover, which will result in “guaranteeing the remuneration policy for shareholders” (…).

The operation has been articulated through a €16.29 million capital increase in Vitruvio, through the issue of 1,629,907 new shares of the same class as those already in circulation with a nominal value of €10. Those shares have been issued at an issue premium of €3.20 per share and have been subscribed by the shareholders of Consulnor Patrimonio Inmobiliario. Following the merger, the market capitalisation of Vitruvio will be set at €64 million.

In terms of assets, on 25 May, Vitruvio subscribed to an “exclusive and binding” agreement to obtain a building for hotel use in Madrid for a value of between €11 million and €12 million. Although the company has not provided any more details about the operation, it has explained that the estimated annual rent from the property will amount to more than €650,000, “which represents a net return of more than 5.55%” (…).

New Board of Directors

As part of the agreement between Vitruvio and Consulnor Patrimonio Inmobiliario, the Board of Directors of the resulting company, which will retain the name Vitruvio, will result in the entry onto the Board of four new members. Most notably, Pablo de la Iglesia, Director General of Consulnor, will joins the Board of Directors of Vitruvio, having worked for other companies such as Barclays and Jopa Family Office.

José Antonio Torrealba will also have a seat on the Board of Vitruvio (…). José Ignacio Iglesias will be the representative of the Voluntary Social Welfare entity Araba Eta Gasteiz Aurreski Kutxa II (…). Finally, the fourth new member of the board will be Sergio Álvares, who is also an existing board member of Consulnor Patrimonio Inmobiliario.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Vitruvio Buys Hotel In Madrid For €12M & Approves CPI Merger

9 June 2017 – Eje Prime

The Socimi Vitruvio is adding new assets to its portfolio in the midst of its own corporate changes. The company has just acquired a hotel in Madrid, for which it has paid €12 million. This acquisition is going ahead after the General Shareholders’ Meeting voted on Tuesday to approve a €25 million capital increase and the company’s merger with Consulnor Patrimonio Inmobiliario (CPI), a vehicle managed by Banca March.

On 25 May, Vitruvio signed an “exclusive and binding” agreement to acquire a building dedicated to hotel use in Madrid for between €11 million and €12 million. Although the company did not want to provide more details about the operation, it has explained that the estimated annual rent will be more than €650,000, “which represents a net yield of more than 5.55%”. (…).

“This (capital) increase mechanism is essential for Vitruvio’s philosophy”, say sources at the company – “All of the Socimi’s capital increases are undertaken once investment opportunities have been identified, never before”. “It is a mechanism to prevent the pressure to invest money leading to poor purchase operations. Moreover, it also serves to avoid the dividends of the existing shareholders from being diluted if they decide not to invest in the new acquisitions”, they add.

Another point approved at the General Shareholders’ Meeting was the company’s merger with Consulnor Patrimonio Inmobiliario. “It was approved with 81% of the votes going in favour of the resolution and none against”, explain the group’s sources; “As such Vitruvio has received the green light to absorb CPI as part of its growth strategy”.

In addition, Vitruvio’s Board will be expanded to make way for the participation of four representatives of the Basque group, and other high-profile shareholders will participate in Vitruvio’s advisory committee, although for the time being, the company has not revealed any details of the names of the directors that will be incorporated into the Group’s most senior management body.

The resultant firm, which will retain the name Vitruvio, will manage a portfolio of assets comprising office buildings, homes and retail premises located in Madrid, País Vasco and Barcelona. By virtue of the operation, Vitruvio will absorb Consulnor Patrimonio Inmobiliario through a non-monetary capital increase.

The merger will allow the company to double in size, given that at the end of June 2016, its portfolio was worth €51 million, a figure that will increase to around €90 million following the integration of Consulnor Patrimonio Inmobiliario. Moreover, following the capital increase, which will be undertaken within the next few months, the resultant company will own a portfolio of assets worth €133 million. (…).

Original story: Eje Prime

Translation: Carmel Drake

Socimi Vitruvio Set To Merge With Consulnor Patrimonio

15 December 2016 – Press Release

The Boards of Directors of the Socimi Vitruvio and Consulnor Patrimonio Inmobiliario (CPI) have agreed to submit plans for a merger between the two companies to their respective General Shareholders’ Meetings.

The resultant company, which will operate under the Vitruvio name, will manage a real estate portfolio worth approximately €90.5 million, according to the Socimi whose shares are listed on the MAB. The new company can expected to generate gross revenues from rental income of €5.3 million in 2017.

The aim of the merger is to generate value for the shareholders of both companies. Vitruvio will contribute better locations and its core renovation business, as a lever for creating shareholder value. Vitruvio will also reduce CPI’s indebtedness and therefore lower the risk for its current shareholders. Meanwhile, CPI will contribute a portfolio with a greater capacity to generate revenues, which will improve Vitruvio’s current dividend. Overall, the larger vehicle will be very attractive for a wider range of investors.

Original story: Press Release

Translation: Carmel Drake