Renta Corporación Fattens Up its Socimi with Flats Acquired through Suquía’s Bankruptcy

24 February 2018 – Voz Pópuli

The Socimi Vivenio, created by Renta Corporación and the Dutch pension fund APG, has reached an agreement with the Suquía group to acquire homes in Vallecas (Madrid) for a price of more than €13 million.

The real estate company Suquía, which is headquartered in San Sebastián and which was declared bankrupt two years ago, has recently reached a payment agreement with its creditors, the majority of which are financial institutions, to avoid the bankruptcy situation in which it is immersed.

During the negotiations to reach the agreement with its creditors, the company has made several deals to sell assets, including one with the Socimi Vivenio, which has agreed to purchase more than 100 homes located in a building on Calle Arte Pop, in the Vallecas neighbourhood of Madrid, for €13.54 million.

The agreement between Renta Corporación’s Socimi and Suquía values most of the homes at a price of less than €200,000, with the exception of the penthouses, which are reportedly worth more than €300,000. The sale agreement is pending authorisation by the judge of Mercantile Court number 1 in San Sebastián, which is in charge of Suquía’s bankruptcy proceedings, after having already requested it during the insolvency administration.

The creditors of the real estate company include Sareb, which has agreed that its mortgages on the homes that Vivenio is going to purchase may be cancelled simultaneously, as part of the bankruptcy process

Promociones Suquía was constituted in 1986, with a registered office for corporate and tax purposes in San Sebastián. It was declared bankrupt in December 2015. In 2016, according to the accounts filed by the company with the Mercantile Registry, to which this newspaper has had access through Insight View, it recorded losses of €1.8 million. The company ended that year with non-current bank debt amounting to €39.2 million and current bank debt of €8 million. Sources close to the real estate company indicate that following this agreement and the authorisation from the court, the company will continue with its property development activity in Bilbao, San Sebastián, and Madrid.

Renta Corporación, which has joined forces with the Dutch fund APG, plans to debut Vivenio on the stock market next year. The Socimi has set itself the objective of acquiring assets worth €1.5 billion in total, primarily properties in Madrid and Barcelona, with a minimum investment of €10 million.

Original story: Voz Pópuli (by Alberto Ortín)

Translation: Carmel Drake

Renta Corporación’s Socimi Rembrandt Acquires 156 Rental Homes

17 October 2017 – Cinco Días

Renta Corporación has just completed its second operation for its Socimi Rembrandt Activos Residenciales. Moreover, the deal is the entity’s largest transaction to date. Specifically, it has invested €50 million in rental homes.

The Socimi, which is managed by Renta Corporación and controlled in terms of its share capital by the Dutch pension fund APG, has completed the acquisition of a residential complex comprising three buildings, spanning a total surface area of 20,114 m2, in Aravaca (Madrid).

The vehicle, which is managed by Renta Corporación, has purchased 156 homes with an average surface area of 102 m2 each, along with 168 parking spaces. This real estate asset currently has an occupancy rate of 51.3% and the Socimi plans to make the asset fully operational over the next few months.

This is the second operation undertaken by the Socimi, which was created at the end of April. In June, it acquired two residential complexes on the outskirts of Madrid, in the municipalities of Navalcarnero and Rivas Vaciamadrid, for just over €25 million. Both properties have a combined surface area of 20,891 m2 and contain 335 rental homes.

Renta Corporación entered the Socimi segment this year (…) as the manager and minority shareholder of Rembrandt. The Socimis’ residential sector is less developed in Spain than those of offices, hotels and shopping centres, where Merlin, Hispania, Lar España, Colonial and Axiare rule the roost.

In the rental home sector, the key players are Testa Residencial, the Socimis established by the fund Blackstone, and several smaller entities such as Alquiler Seguro, VBare and Vitruvio. Rembrandt, which is under the obligation to make its debut on the stock market within two years, is a new line of business that is allowing the listed real estate company Renta Corporación to expand its market.

Whilst the management company brings its knowledge of the Spanish market to the table, APG contributes its enormous financial muscle. The experts forecast that this rental homes segment will continue to grow in Spain, where there is increasingly more demand from tenants.

Original story: Cinco Días (by A. Simón)

Translation: Carmel Drake

Orion Launches €1,500M Fund & Plans Its Return To Spain

3 May 2017 – El Economista

Orion Capital has raised €1,500 million for its fifth real estate fund, which is dedicated to purchasing assets across Europe. According to sources in the sector, the Dutch fund has placed its focus on Spain, where it plans to spend some of that money. “It has not set itself a fixed objective, but Spain is a country that is very attractive”, confirm the sources.

The fund used to own a significant portfolio of assets in Spain, nevertheless, between 2014 and 2015, it completed the divestment of the last properties that it owned and maintained only its stake in Sotogrande, which it owns jointly with Cerberus.

Now, Orion wants to restore its presence in the country and to that end, it is looking for high value-added operations, including renovations and new developments. According to the sources, the fund, founded by Aref H. Lahham, Van J. Stults and Bruce C. Bossom, also wants to increase its exposure to Spanish real estate in an indirect way by acquiring stakes in companies in the sector and by purchasing debt.

Orion’s interests span almost every segment of the market. In the case of offices, the fund will concentrate its efforts in Madrid and Barcelona, looking at both refurbishments and new developments. To acquire shopping centres, it will expand its geographical range and will analyse operations in smaller cities as well. In that case, the fund will only participate in a project under development if it is in an advanced stage, where no planning is required. “Everything should be ready to build”, explain the sources, given that the manager has a team of just three people in Spain. The hotel segment is also on its radar, as well as logistics, in which “it will probably operate by constructing new spaces”.

During its previous phase of intense activity in Spain, Orion starred in several major transactions, such as the purchase of the Plenilunio shopping centre (Madrid) in 2009 for €235 million, which it then sold in 2015 for €375 million. Similarly, it completed a high-profile divestment when it exited Puerto Venecia, in Zaragoza, by selling the largest shopping centre in Spain to Intu for €451 million. Orion hopes to start buying assets in Spain once again before the end of the year.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake