8 May 2015 – Cinco Días
The Catalan company Renta Corporación hopes to sign at least one agreement with a foreign real estate fund in 2015 to (allow it to) continue investing in new assets. That is what sources at the company said yesterday following the presentation of its results for the first quarter 2015.
Renta Corporación closed the first quarter with a 10% increase in profits, to reach €1.1 million thanks to the sale of four buildings. The company also revealed that it has already committed to future sales worth €33 million. The listed company has debt amounting to €22 million and Sareb currently holds a 5% stake in its share capital.
The partnerships it hopes to sign this year will resemble the agreement it has already signed with the fund Kennedy Wilson Real Estate to acquire and transform residential buildings.
Currently, as a result of this agreement, the joint venture has already invested in property in the central Almagro neighbourhood of Madrid.
These new investment vehicles will allow it to specialise in the purchase of hotels and commercial assets. Renta Corporación hereby gains financial muscle, since almost all of the investment is financed by the fund, like in the case of Kennedy Wilson.
After overcoming bankruptcy last year and returning to the stock exchange, Renta Corporación expects to work with these international funds to continue its growth. Sources at the company say that they understand that their experience in the Spanish market is critical for these firms, which in turn provide liquidity.
Original story: Cinco Días (by Alfonso Simón Ruiz)
Translation: Carmel Drake