Hispania Activos Inmobiliarios Climbs by 3.25% at Flotation

18/03/2014 – El Mundo

Hispania Activos Inmobiliarios went up by 3.25% at the opening day in the Stock Exchange Market. The flotation concluded with €10.325 per share, despite a slight decline by 1.39% registered only in the Madrid Stock Exchange.

The company re-appreciated by 6% during the session in which it has always been supposed to appear for more than €10 per share starting price. Precisely, the shares of Hispania sold for between €10.300 and €10.650 to investors, since the tranditional bell rang for its flotation at 12 o´clock.

Hispania Activos Inmobiliarios, chaired by Rafael Miranda, is the second firm becoming listed this year after Lar España Real Estate, aSocimi of Grupo Lar (price at the end of the session: €10.550, + 0.47%).

The freshly listed company has been placed on the stock market with a €500 million capital. Multi-millionaire George Soros entered it with €92 million that guaranteed him an 18.4% stake.

Hispania´s target is to creat a high quality portfolio including residential property, offices and hotels in Spain. Later, it will invest in students´residences. (…) Special focus will be put on the property sold by Sareb and banks.

 

 

Original article: El Mundo (Europa Press)

Translation: AURA REE

Azora Pushes Hispania Towards Flotation

13/03/2014 – Cinco Dias

Hispania, Azora´s investment trust, shortened demand prospecting period and signed an underwriting contract that will permit it to become listed.

Next step will be having a suscribtion application confirmed, public deed executed, closing an increase in share capital, signing up at the Mercantile Registry and awarding assets. Once all accomplished, this Friday new asset negotitations will be run.

Four days later, on Tuesday, the offer will be liquidated and on April 13th the “green shoe” option for coordinating entites that have been previously granted 5 million shares will expire.

Initial offer size is fixed at 50 million shares issued for €10 each that altogether raises the starting company value to €500 million. Hispania´s ticker will be HIS.

The release is calling attention of illustrous international investors, such as Paulson, Moore Capital, APG, Cohen & Steers and Canepa.

 

 

Original article: Cinco Días (Cotizalia)

Translation: AURA REE

Azora´s Real Estate Vehicle Starts Off With 62% Capital Lockup

4/03/2014 – Cinco Dias

George Soros and John Paulson, both among the world´s most important fund managers, are going to inject €92 million each in Hispania Activos Inmobiliarios, established by Azora fund in order to invest in the Spanish property market. Each businessman will hold about 18% of the stake and by so become its main shareholders. The company´s objective is to raise €500 million, out of which 62% (€314 million) capital lockup is already pledged by investors.

The CNMV has approved the booklet of Hispania´s flotation and the company is going to be launched on March 19th. Azora Gestión will manage and hold 2.28% of the capital. Strikingly, the idea of creating a Socimi has been abandoned, as confirm the words of its founder, Fernando Gumuzio: “we seek flexibility to buy various types of assets” and a Socimi requires at least 80% of assets intended for rent.

Goal: 15% Yield

Hispania aspires to create “a quality portfolio consisting of residential, office and hotel property all over Spain”. The target is to benefit from the cycle reversal and the cash flow generated by wide asset range including debt backed by the real estate or stakes at companies. To begin with, the listed firm is said to be set up for 6 years and bring 15% yield.

Therefore, Azora´s vehicle would exceed the 12.5% profitability foreseen for the Socimi set upon by the Lar Group, supported by Pimco and to be floated this week.

Withal, Azora does not deny having a Socimi as an affiliate. “Hispania weights up creation of Socimi Filial in order to make profits from the tax advantages offered by such sort of listed firms, not sooner than on September 30th, though”. (…).

Soros and Paulson will channel their investment through Quantum Strategic Partners and Paulson & Co. respectively. Other anchor investors worth mentioning that contribute to the €314 million amount are: Moore Capital Management, APG, Cohen & Steers and Canepa. Free float will constitute the rest of the capital (35%).

Hispania Activos Inmobiliarios´s administrative board will be led by ex-executive of Endesa, Rafael Miranda. Other members are ex-director of Ferrovial, Joaquín Ayuso, José Pedro Pérez Llorca and Luis Mañas. Hispania named Goldman Sachs and UBS as the offer coordinators and placers.

 

 

Original article: Cinco Días (David M. Pérez)

Translation: AURA REE

Soros & Paulson Gamble on Spanish Real Estate Market

04/03/2014 – ExpansionPro

George Soros and John Paulson are buying large stakes at Spanish groups´flotation. That proves the growing trust among investors in the economic recovery of the country.  The two great hedge fund managers – the first and the fourth in the world in the total profits gained in 2013 ranking – have acquired the stakes for €92 million in Hispania Activos Inmobiliarios.

Last week, Hispania declared a plan to launch a public value offer containing the remaining shares and by now it has already raised a considerable part of the foreseen €500 milion through the down payments. The documents are awaiting approval.

Investment Fund

Hispania will become listed on the Madrid´s Stock Market as a real estate investment trust (REIT), specialized in property with growth margin, especially in main cities. It aims at offering an annual yield of two numbers for 6 years. The trust will be managed by Azora.

If successful at the takeover bid plan, Hispania will become the second real estate group listed on the Stock Market since the recession began. Two weeks ago, Lar España was registered as a pioneer and raised €400 million.

The real estate assets in Spain, after losing one third of their value from 2007 through 2013 as the ECB told, become more and more popular among investors, mostly due to improvement on the British and the Irish markets. Investment in Spanish property doubled in 2013 in regard to the previous year and represented €2.700 million, according to the data from Cushman & Wakefield. 

Takeover Bids

(…) The news on the investment of the hedge fund managers  in Hispania arrives in the moment of increased gambling on the south of Europe. Funds related with Soros invested in indebted Spanish construction company FCC last month, while Paulson invested in Greek banks in autumn.

Original article: ExpansiónPro (Kate Allen/Miles Johnson)

Translation: AURA REE