Corpfin Agrees Sale of 13 Premises for €83M

10 April 2018 – Expansión

Corpfin Capital Real Estate is preparing to rotate most of the assets in the portfolios owned by its listed Socimis. The fund manager chaired by Javier Basagoiti (pictured below) has reached an agreement with an investor to sell 13 of its 21 commercial properties for €83.33 million.

According to the terms of the agreement, the sale of the assets will be carried out before the end of 2020, to allow time for the Socimis to comply with the regulations that govern them, which require properties to be owned for at least three years in order for the companies to benefit from the exemption to pay tax on any gains obtained from transactions.

Corpfin has invested €114 million through CCPR II and CCPR III –its two listed Socimis – since 2014.

Following the sale of five premises, it now owns 21 assets on the main high streets of Madrid, San Sebastián, Burgos and Valencia, which are occupied by tenants such as McDonald’s, Vips, Starbucks, Zara and Mango.

Moreover, it has purchase options over three other assets in San Sebastián and Madrid.

The manager has just launched a new vehicle, Inbest, through which it plans to invest €400 million in high street assets between now and 2021, of which €200 million will proceed from own funds and the remainder from gearing.

The fundraising process for Inbest was initiated in February and is expected to conclude in December or whenever the funds reach the €200 million threshold. The structure of Inbest will include one Socimi from which four others will depend, which will all be listed on the stock market.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Testa Becomes A Socimi & Puts Its Residential Portfolio Up For Sale

29 September 2015 – Expansión

The real estate company Testa is making progress with its integration with the Socimi Merlin Properties. Yesterday, the company held an extraordinary shareholders’ meeting to approve a change in the corporate structure of the real estate company into a listed real estate investment company (Socimi).

The decision comes after an agreement was made between Sacyr and Merlin in June to sell Testa for €1,793 million. Currently, the Socimi led by Ismael Clemente (pictured above) controls 77% of Testa’s capital and is expected to own 100% of the shares before the end of June 2016.

The Socimi-conversion will apply (retrospectively) from 1 January 2015, which means that Testa may benefit this year from the tax advantages afforded to this kind of company, although they have yet to be quantified.

At the meeting yesterday, the shareholders approved the appointment of Ismael Clemente as a Director of Testa; he currently also serves as the Chairman and CEO of Merlin Properties. In addition, Miguel Ollero, a Director of Merlin, was also appointed as an independent Director of Testa, following the resignation of Juan María Aguirre Gonzalo.

Following the entry of these two new Directors, Testa’s governing body comprises seven members, including the Chairman, Fernando Rodríguez Avial and the CEO, Fernando Lacadena.

Once the purchase of the whole company has been completed, the two companies will merge into a single Socimi. The new Merlin Properties will have assets worth around €5,000 million.

Having taken control of Testa, the Directors of Merlin have decided to divest the real estate company’s residential portfolio, which contains around 1,500 homes. They have engaged two consultancy firms to coordinate this process, which is expected to begin within two weeks.

Potential purchasers of the portfolio include other Socimis and investment funds.

In addition to the sale of this package of properties, which generates annual rental income of €10.5 million, Merlin has also announced that it will sell the portfolio of hotels currently owned by Testa, before the end of the year.

Merlin’s shares closed trading on the stock exchange yesterday at €10.72 per share, up 0.33%, taking its market capitalisation to €3,461.3 million, whilst the market capitalisation of Testa is €2,055.5 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake