MAB Approves Testa’s Stock Market Debut with Market Capitalisation of €1.83bn

24 July 2018 – Eje Prime

Testa is getting ready to refinance its debt. The Socimi in which Santander, BBVA, Merlin and Acciona Inmobiliaria hold stakes has included the refinancing of its liability on its roadmap, given that 91% of the firm’s gross financial debt is due to expire in 2022, according to an information document prepared for its incorporation onto the Alternative Investment Market (MAB), which was published yesterday.

As at 31 March, Testa’s gross financial debt amounted to €475 million, whilst the net financial debt amounted to €415 million. In addition, in order to finance the purchase of the BuildingCenter, the company took out two more loans amounting to €230 million.

As the company explained, of the total gross financial debt, €431 million (91%) expires in 2022. The company plans to refinance its debt by resorting to different instruments.

Testa’s plans following its debut on the MAB involve continuing with its purchase process, which involves acquiring between 1,000 and 2,000 apartments each year. According to the document, the Socimi has a pipeline with a GAV of around €539 million, which represents around 2,959 apartments.

As at 31 December 2017, Testa’s portfolio comprised 9,244 homes, 295 retail premises, located in the same buildings as the homes, and an office building and parking lot in Plaza Castilla, with a combined market value of €2.276 billion. Nevertheless, that data does not include the BuildingCenter portfolio.

In March, Testa signed an agreement to acquire the residential portfolio of the real estate arm of CaixaBank, comprising 1,458 homes. To date, according to the MAB document, Testa has acquired 1,450 apartments from that portfolio for a price of €226 million.

By geographical area, the Community of Madrid accounts for approximately 65% of the gross value of the portfolio, followed by San Sebastián, with 7.2%; Barcelona, 4.1%; Las Palmas de Gran Canaria, 2.9%; Valencia, 2.5%; Toledo, 2.4%; Pamplona, 2%; Valladolid, 1.9%, and Oviedo, 1.5%.

The company, in which Santander holds a 36.8% stake; BBVA a 25.6% stake; Acciona a 20% stake and Merlin Properties a 17% stake, will make its debut on the stock market with a capitalisation of more than €1.83 billion. The company’s stock market debut has suffered several delays, but yesterday it received the green light from the MAB.

Original story: Eje Prime (by P. Riaño)

Translation: Carmel Drake

New Home Shortage In Madrid Drives Up Prices

3 May 2016 – Capital Radio

“All of the new build projects being marketed at the moment are off-plan and those that are finished have already been sold. We do not have any more new build home stock left in Madrid”, said Carlos Smerdou, CEO of Foro Consultores. That was one of the conclusions to emerge from the Real Estate Investment debate about the present and future of new build homes, held on Thursday at Capital Radio. The recovery of the real estate market is a fact. “Certain cities, such as Madrid and Barcelona, started to run out of new build stock sooner, when demand exceeded supply, but that phenomenon has now spread to other cities such as Málaga, Alicante and Córdoba and the recovery is now evident across the country. (…)”, said Carlos Smerdou.

“The client profile has changed. Before we had investors looking to benefit from property price rises, but now investors are an end clients looking to upgrade to larger homes. One- and two-bedroom flats are no longer being built, instead we have three-, four- and five-bedroom homes. Buyers are now looking for quality, design, ecological projects and energy efficiency”, explained Javier Román, Commercial Director at Solvia.

“We are a cooperative manager and we have noticed that despite the political uncertainty, there is a lot of interest from people looking to buy a home. Young people have started to buy subsidised homes because the economic situation is allowing them to do so. It is clear that we have reached the lowest point of the house price cycle and in certain micro-markets, such as the one that we move in (subsidised housing), we are seeing a great deal of interest and we are even seeing price increases for unsubsidised homes”, said Juan Carlos Bartolomé, Real Estate Director at Víveme.

“During the boom, everything was sold, but now clients are more demanding and, as property developers, we have to focus on the clients’ preferences. We have to deliver a quality product, not only in terms of the materials, but also in terms of energy efficiency, which then generates savings for the buyer. Our plan is to end this year with 40 developments underway in Madrid, Andalucía, Costa del Sol, País Vasco and Cataluña”, confirmed Gabriel Sánchez, Business Director at Neinor Homes.

Industry experts are calling for a more efficient licence approval process from the Town Hall of Madrid. “We have a problem with the timeframes. The Town Hall of Madrid is taking too long to grant licences and is delaying lots of projects. That is wrong and it means that in the capital, there is already a shortage of new homes, which is leading to price rises”, explained Carlos Smerdou.

“It is undeniable that there is a problem in Madrid due to the delays in granting building permits, which in the best cases is taking six months. And that means that investors are afraid of starting a project that then gets paralysed”, said Juan Carlos Bartolomé.

“The delay by the Administration is widespread across the country, but there is more focus on Madrid and Barcelona because there are more projects there waiting to receive licences. (…)”.

Original story: Capital Radio (by Meli Torres)

Translation: Carmel Drake