Blackstone Puts a Portfolio of FIdere’s Homes Worth €150M-€200M Up For Sale

25 April 2019 – Expansión

The US fund Blackstone has launched the sale of a portfolio of homes belonging to its Socimi Fidere worth between €150 million and €200 million.

According to sources, several interested parties are already analysing the portfolio, whose perimeter may vary depending on the offers received. This sale forms part of a wider initiative by Blackstone to rotate some of the assets in its portfolio. The US fund has already put some of the offices owned by another Socimi Corona up for sale.

Since 2012, Blackstone has invested almost €24 billion in real estate in Spain, where it is the owner of several investment vehicles and management companies, including the Socimis Testa, Albirana and Torbal, as well as Hispania.

Original story: Expansión (by R. A.)

Translation/Summary: Carmel Drake

Blackstone to Sell its Socimi Corona for c. €220M

16 April 2019 – El Economista

Having spent the last 5 or 6 years accumulating one of the largest real estate portfolios in Spain, Blackstone is now starting to rotate some of its properties. To this end, it is looking to divest the Socimi Corona, which owns five office buildings – 3 in Madrid and 2 in Barcelona.

The US fund had previously put the 5 offices on the market as a portfolio, but has now decided to put them up for sale on an individual basis. As such, it hopes to generate revenues of €220 million, which would represent significant capital gains, since it acquired the group of assets (with the exception of the Delta Nova complex) for around €135 million from CBRE Global Investors in 2014.

Blackstone has already agreed the sale of the first property, the MB One Building in La Moraleja spanning a GLA of 22,129 m2, which Grosvenor is going to acquire for around €80 million.

Original story: El Economista (by Alba Brualla)

Translation/Summary: Carmel Drake

Blackstone Prepares a Series of Portfolio Sales Following its 6-Year Spending Spree

27 March 2019 – El Confidencial

The US fund Blackstone, which has been so busy on the buy side in recent years, is getting ready to put the for sale sign up, over some of its assets at least. It is preparing the sale of several portfolios, including the Socimi Corona, the homes of Fidere and also some of the former assets of Popular that it acquired from Santander.

Several sources have confirmed that the US fund is currently designing portfolios for sale in order to rotate some of the €20 billion in property that it now owns in Spain. Most of the portfolios are expected to be small, between €50 million and €300 million, although the fund is reportedly also working on some larger deals that could reach €600 million. The plan is to put the portfolios on the market before the summer.

Blackstone’s target market includes pension funds and insurance companies, which operate with lower costs of capital and which, therefore, can afford to pay more. It already trialled that strategy with the sale of Hispania’s offices to Zurich, to great success. But Blackstone will also target other funds looking to grow or complement their existing investments.

Despite this vendor activity, the US giant is still committed to buying assets in Spain. It simply wants to rotate its most mature assets, given that it started making investments in the country in 2013.

Original story: El Confidencial (by R. Ugalde and J. Zuloaga)

Translation: Carmel Drake

Blackstone Launches its 6th Socimi in Spain with 1,600+ Rental Homes

27 December 2018 – El Diario

Blackstone is increasing its position as the largest landlord in Spain. On Thursday, the vulture fund received approval to list its sixth Socimi, Euripo, on the stock market, which will make its debut with an initial value of €110 million. On its balance sheet, another 1,600 homes that will join the more than 20,000 properties that the fund already owns.

Euripo will make its debut on the Alternative Investment Market (MAB), the secondary market in Spain, where it will join other Socimis owned by the US fund, including Fidere, Albirana, Corona and Torbel. Blackstone also recently took control of 80% of Testa, the largest rental home company in Spain, ownership of which it shares with Banco Santander.

In this way, almost one in ten Socimis in Spain have Blackstone as a majority shareholder. As is usual in the operation of this fund, Euripo is owned by a company belonging to Blackstone that is based in Luxembourg.

In this case, Blackstone is listing a portfolio comprising more than 2,000 real estate assets including homes, garages and commercial premises proceeding from the divestment of two financial entities, BBVA and the now extinct Banco Popular. Of the total portfolio, it has direct ownership of 1,900 assets, whilst another 400 are in the hands of a related company, which will likely end up on Euripo’s balance sheet, according to comments included in the IPO document.

There are currently more than 60 Socimis listed in Spain on the MAB, the main stock market and the Ibex 35. Blackstone has been the most active investment fund, especially in the rental home segment, where it controls almost a quarter of the companies currently listed.

The set of assets that Blackstone is debuting on the stock market with this new Socimi is worth around €215 million, of which half are located in Madrid and Barcelona. The remainder are distributed across 35 Spanish provinces, according to the aforementioned IPO document.

Currently, less than 30% of the properties of this company are occupied. For this reason, the company expects to increase its revenues by improving the occupancy ratios and by increasing the rents charged for each occupied home by between 4% and 5%. Moreover, it says that 7% of its assets are illegally occupied.

Original story: El Diario (by Diego Larrouy)

Translation: Carmel Drake

Sareb’s ‘Corona’ BAF Earns €1.3 Mn by June

10/09/2014 – El Pais

Ahorro y Titulización, the management company appointed for the Banking Asset Fund Corona on December 19th 2013, has delivered the first half of the year results sheet to the National Stock Market Commission. The vehicle created by Sareb, Spains bad bank, brought €1.3 million gains.

The amount was obtained after reducing the total earnings (€3.23 million) from rentals of four office buildings included in the Corona portfolio by €1.93 million. Out of these expenses, €900.000 were financial and similar, €425.000 covered asset damage and almost €600.000 were general expenditures, including commission charged by Sareb of €128.000.

For the day 30th June 2014, the BAFs portfolio consisted of four office buildings acquired from Sareb (Delta II and III, Montecarmelo and Tucuman) for €80 million. The two Delta properties show a 84% occupancy rate, while Montecarmelo and Tucuman (pictured) are fully rented.

The bad bank is the only shareholder of the fund and it sold the units to itself through a debt issue of €48 million. Moreover, Sareb lent to itself €32 million at 5% interest rate and gave a credit line of €4 million, including €597.000 intended for expenditures in the first quarter of the year.

The debt will be auto-paid-off by the bank.

When it comes to the financial assets encompassed in the Corona fund, they represented a €2.34 million in liquid and €275.000 in unpaid rentals. Out of the latter, €68.000 have been classified as sub-performing as the tenants failed to satisfy their payments for more than 3 months and therefore a provision of €11.000 has been made to cover the loss.

 

Original article: El País (by Juan Carlos Martinez)

Translation: AURA REE

Sareb selects four offers for the operation Corona.

Sareb is taking a step towards closing the operation Corona in the next few weeks, one of the portfolios it has currently in the market. Corona is made up of four buildings located in Madrid (Montecarmelo, Tucumán, Delta II and Delta III) with a market value of 80 million Euros.  Initially,  the  number  of  buildings  was  higher  (seven),  but  Sareb  decided  to restructure the operation and to reduce the volume to obtain a better price. The buildings withdrawn from the package did not belong exclusively to Sareb, and this created difficulties to the potential buyers. For this reason the offers received were not attractive enough. 32 proposals were presented which did not meet the expectations of the company.

After restructuring the portfolio, Sareb has received four “very favourable” offers, according to sources within the market. These four finalists will have approximately ten days to present the final proposals. After that, Sareb will select two of them and will start the process of due diligence.

The sale of the portfolio Corona will be carried out through a Banking Assets Fund (BAF), already used in August, when Sareb sold the portfolio Toro. The BAFs are investment vehicles with tax benefits. (…)

 

Source: Expansión