CVC and Portobello to Invest €141 Million in Vitalia

20 August 2019

CVC and Portobello are planning to invest €141 million over the next four years in Vitalia, a firm that builds and manages geriatric centres. The firm plans on building a portfolio of 10,000 beds, becoming the second-largest operator in Spain, behind Sarquavitae (owned by DomusVi).

Vitalia will build 19 new residences in Madrid, Catalonia, Castilla y León, the Valencian Community and Murcia. The investments will add another 3,175 residential beds and 536 daycare places to the Vitalia’s existing portfolio.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Cortefiel’s Founder Lists Its Socimi Inmofam 99 On The MAB

21 December 2016 – Expansión

The Hinojosa family has listed its real estate Socimi Inmofam 99 on the stock market. The company primarily owns retail premises worth around €48 million.

Another Socimi will debut on the Alternative Investment Market (MAB) today (21 December) – Inmofan 99 will be the twenty-sixth Socimi to join the market and will do so with a portfolio worth €48.05 million.

Although the name of the company may not be well known, one of the most representative families in the Spanish fashion world is behind this Socimi: the Hinojosa family. The founders of the Cortefiel group, which owns the brand of the same name, as well as Springfield, Women’s Secret, Pedro del Hierro and Fifty Factory, have decided to convert their real estate company into a Socimi and whereby benefit from the tax advantages afforded by this type of investment vehicle.

Founded as a limited company in June 1999, Inmofam has focused its activity on managing the real estate assets of the Hinojosa family. In September 2015, the company converted itself into a Socimi and 14 months later it is debuting on the stock market with a market capitalisation of €38.83 million.

Diversified portfolio

Inmofam 99’s portfolio comprises a batch of stores that the Hinojosa family held onto after selling the Cortefiel textile group to the funds CVC, PAI and Permira in 2005. The nine assets are leased to the textile group that they founded: six of them are Cortefiel stores, two are Springfield stores and one is a Women’s Secret shop. The stores are located in Madrid, La Coruña, Oviedo, Las Palmas de Gran Canarias, Málaga, Valencia, Zaragoza and two in Valladolid.

In December 2004, the company bought its real estate jewel, a 2,620 m2 store located on Calle Raimundo Fernández Villaverde, which is one of the most iconic stores of the Cortefiel brand in Madrid.

The Hinojosa and García-Quirós families (which have been related for years) receive rental income of more than €883,000 for this store. Nevertheless, Cortefield has notified the Socimi of its decision to terminate the rental contract from 31 December, which has led Inmofam to update its value for this property to €11.75 million.

The other eight retail premises are worth between €2 million and €7.1 million. The former relates to a store on Calle Zorrila in Valladolid, which Cortefiel will also vacate at the end of the year, which has been taken into account in its valuation. Moreover, it owns several floors, for residential and office use, in Oviedo.

In 2005, the Hinojosa and García Quirós families sold the Cortefield textile group to the funds CVC, Permira and PAI for €1,440 million. Currently, Joaquín García-Quirós Rodríguez chairs Inmofam and Juan Hinojosa Vacas, Almudena Hinojosa Bermejo, Gonzalo Hinojosa Fernández-Angulo and Dario Hinojosa García-Puente complete the Socimi’s Board of Directors.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Bankia Will Get Best Price For Its Stake In Realia Regardless Of Who Wins Bid

9 March 2015 – Expansión

Battle for the real estate company / Slim has committed to pay Bankia the difference between the price agreed for the purchase of its 24.9% stake and the eventual winning bid.

Bankia will win regardless (of who turns out to be the evenutal victor) in the takeover war being waged by Carlos Slim and the Socimi Hispania Real for Realia. The financial institution, a historical shareholder in the real estate company, together with FCC, will obtain the same profit as the other shareholders, despite having sold its stake to the Mexican tycoon last Wednesday.

According to information submitted by Inmobiliaria Carso to the CNMV, the company controlled by Slim has guaranteed Bankia a payment to cover the difference, if the evenutal successful offer (price) for Realia is higher than the amount received by the bank.

The entity chaired by José Ignacio Goirigolzarri sold Slim the 24.95% stake that it held in Realia for €0.58 per share, and therefore it received €44.48 million. The offer exceeded the only firm acquisition proposal made up until that point by 18%, which had been submitted by the Socimi Hispania; its offer for 100% of Realia amounted to €0.49 per share.

Both proposals fell significantly below the average trading price of Realia’s shares on the stock exchange. On Friday, after Expansión published that Slim was negotiating an agreement with Hispania to take control of the real estate company, its share price decreased by 3.33% to €0.725, bringing its market capitalisation to €222.8 million.

Hispania’s takeover bid values Realia at just over €150 million, compared with Slim’s offer, which places a value of €178 million on the company.

Both takeover bids are voluntary in nature. Nevertheless, the CNMV may force both candidates to improve their respective offers and bring them closer to the average share (trading) price recorded in recent months. That happened in the case of Deoleo, when the regulator forced the venture capital fund CVC to increase its offer from €0.38/share for the oil group to €0.395/share. On that occasion, the fund also extended the higher bid price to the financial institutions from which it had previously purchased shares in Deoleo.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake