Cerberus Looks to Expand in Spain

3 October 2019 – Cerberus is looking to increase its presence in the Spanish residential real estate market. The fund, which already owns Inmoglaciar, is in talks with investment banks to potentially acquire a larger developer to further enhance its activities in the Iberian peninsula.

Most recently, the US fund bid on Solvia Desarrollos Inmobiliarios’s developer. However, though the fund was a finalist in the bidding process, it lost out to Oaktree, which paid €880-million for the firm, including the company’s structure and landholdings.

Other international funds have been quicker to raise their games in Spain.  Lone Star acquired Neinor and eventually took it public. Castlelake created Aedas with a land bank acquired during the crisis and also took it public. Värde took over Aelca, Parquesol and Vía Célere.

Cerberus is aiming to build 3,000 homes a year, based on its ownership of Immoglaciar and other potential acquisitions. The latest possibility is Inmobiliaria Espacio, which the Villar Mir Group put up for sale two weeks ago.

Original Story: Cinco Días – Alfonso Simón Ruiz / Pablo Martín Simón

Adaptation/Translation: Richard D. K. Turner

Cerberus and BBVA Hire Konstantin Sajonia-Coburgo to Head Up Divarian

16 August 2019

The US fund Cerberus and BBVA have hired Konstantin Saxony-Coburg to head up Divarian, the company that they created after Cerberus acquired the bank’s real estate assets. Saxony-Coburg left his position as co-head of investment banking at Barclays Spain last year, where he had worked since 2010. Divarian, owned 80% by Cerberus and 20% by BBVA, has €13 billion in assets in its portfolio.

The North American fund and BBVA opted to merge Divarian with the US firm’s servicer, Haya Real Estate, this year. Haya is responsible for managing and selling all Cerberus’s real estate holdings in Spain, except for its land bank, which is managed by Inmoglaciar.

Original Story: El Confidencial – Jorge Zuloaga

Photo: Cordon Press

Adaptation/Translation: Richard D. K. Turner

Real Estate Developer Invests €87.4MM, Aiming to Build More than 600 Homes in Granada

6 August 2018

The real estate developer Grupo Inmoglaciar signed a contract for the acquisition of a 25,074-square-meter plot of land in Granada, for a total investment of 87.4 million euros. The company plans to develop 608 homes on the property.

As the company announced in a press release, the property has a buildable area of ​​62,493 square meters, in the area of Parque ​​Nueva Granada in the city’s northwest. The future development is expected to be “fully residential. “The two, three and four-bedroom flats will be built in four-storey buildings, with “elegant architecture and modern design.”

The residential developments will consist of four plots that will be developed in different phases. Sales are expected to begin in the fall of this year. The project will have common-use areas such as a swimming pool, a community room, a gym and a playground.

The acquisition is part of the company’s expansion strategy in Andalusia, where it already has two additional projects, one on the Granada’s Costa Tropical, with 192 homes, and a future housing development in Córdoba.

Original Story: Europa Press

Translation: Richard Turner

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