Bain and Cerberus Vying to Take Over Hercesa

27 April 2018

The company, which has more than forty years of experience in the sector, has already attracted the interest of the two investment funds, which would take over a business structure that has a presence in all market sectors.

A long time player in the Spanish real estate market has put itself up for sale. The Hercesa Inmobiliaria group, which has more than forty years of experience in the sector and which has a presence in all market sectors, has received offers for the company starting at 150 million euros. Up to five investment funds have already expressed an interest in the compan. Bain and Cerberus are considered the two principal contenders, industry sources told EjePrime.

The group, of which the Cercadillo family is the majority shareholder, set a deadline for the submission of applications that ended today. That will be followed by analyses of the company, due diligence and negotiations. The company commissioned KPMG for its valuation prospectus. The group declined to comment on the sale.

Hercesa’s real estate activity is primarily focused on the residential sector, although it also has industrial, tertiary and management assets in its portfolio. Also, the company has had a presence outside of Spain since 2004, having carried out projects in Portugal, Romania, Bulgaria, the Czech Republic, Poland, Morocco, Ecuador, Mexico and Panama.

In the residential market, the holding also owns the manager Hi! Real Estate. Created in 2014, it is the base of the group, which in its forty years of experience has delivered more than 21,000 homes and, at present, is selling 2,600 properties in developments distributed between the Community of Madrid, Malaga, Valladolid and Guadalajara, where its headquarters are located.

However, one of the company’s assets that may of the greatest interest for the funds who want to develop in Spain is their portfolio of land mortgaged with banks. Hercesa has land holdings throughout the Spanish Levant, Andalusia, Madrid and Guadalajara.

In addition to the manager, the group has a developer, Hi! Projects, as well as with the construction company Hi! Works and Services. The last known audit of the group, from 2016, shows revenues of 63.6 million euros and assets of €132 million. Also, the prospectus prepared by KPMG highlights a financial debt of fifty million euros, much of it related to the land mortgaged with banks, with which it has recently reached agreements for the creation of developments on the lands, due to the rebound of construction in the residential sector.

As EjePrime has learned, the company’s intention with this valuation prospectus is to sell the company by taking advantage of the upward cycle that the sector is experiencing and from which the investment funds want to take advantage. It would be, therefore, a new corporate operation in which, just as happened with Via Célere, which received an injection of funds from Värde, the future buyer could keep the current management team.

There have been other such agreements, such as the purchase of Aelca, also by Värde and Cerberus’ acquisition of Inmoglaciar. Also, Bain recently paid 220 million euros for Habitat and Baupost entered the prime residential sector with its purchase of Levitt, through Q21.

Original Story: EjePrime – J. Izquierdo

Translation: Richard Turner

 

Former Larcovi Employees Create New RE Company

22 October 2015 – Expansión

A new real estate management company has been born. It is called Víveme, a company created as the result of a carve-out from the real estate group Larcovi. “We have been hatching the idea for almost a year; and we have been working towards its launch now, at a time when the results in the sector are improving”, explains Mariam Martín Ferreiro, the President of Víveme.

The new company will be responsible for rendering a range of services to third parties, including land searches, project development, financing searches and the marketing of homes. “We work with cooperatives; financial institutions that own land; and projects that have been foreclosed due to bankruptcy”, says Martín Ferreiro. “Víveme will not take on any developer risk, but sometimes we will provide financial support to investors”, she said.

Behind this new company are several former employees of Larcovi. “There is no large business group behind us, instead, as employees we are also shareholders. We have created Víveme because we believe in the recovery of the market and in our own experience”.

Although it was only launched recently, the real estate company has already got almost one thousand homes under management. “As we start out, we already have several projects underway for the development of 900 homes, mostly in Madrid, of which 500 are already under construction”, says the President.

Forecasts

Thanks to this volume of activity, the company hopes to close the first year with a profit. “With the current portfolio, and another two projects that we plan to start before the end of the year, we hope to end the year with turnover of €1.5 million”. The aim is to manage between four and five new projects per year, whereby delivering 2,000 homes between now and 2020. “We have now obtained financing for a development close to the Castellana and in October we will deliver 57 family homes in Rivas”.

Víveme will compete directly with the banks’ real estate arms, which is not something that concerns its directors too much. “We know that the financial institutions are there, but increasingly they are focusing on their core businesses and we believe that we can compete with them, by offering high quality products and by listening to our clients, personalising each home, not just the finishes, but also letting customers participate in the design phase”.

Víveme is one of numerous companies that will participate in the Autumn edition of the SIMA real estate trade fair in Madrid, which is being held between 23 and 25 October. Other participants include: Iberdrola Inmobiliaria, Vía Célere, Hercesa and TM Grupo Inmobiliario, as well as Servihabitat, owned by La Caixa, and Anida, owned by BBVA

Original story: Expansión (by R.R.)

Translation: Carmel Drake

Meridia Buys ‘Miramadrid’ Shopping Centre For €12.5M

17 July 2015 – Expansión

The real estate fund Meridia Capital, which is controlled by the former Vice-President of Barcelona FCB, Javier Faus, and the former director of Sareb, Juan Barba, has closed the purchase of the Miramadrid shopping centre, located in the town of Paracuellos del Jarama (Madrid).

Meridia has paid the developer Hercesa (now called HI Real Estate) €12.5 million for the property, which has a surface area of 7,148 m2; that represents a yield of 8%. (…).

The shopping centre, which opened in August 2009, has an occupancy rate of 97% and its tenants include Mercadona, Burger King and Telepizza. Meridia has been advised on the transaction by Knight Frank, Dokei and Roca Junyent, whilst The Carlton Group has advised Hercesa.

With this transaction, the Spanish fund continues its high level of investment activity, which has resulted in the purchase of real estate assets worth more than €500 million in the last 10 months, including the purchase of 11 GE offices for €100 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake