Realia Commits To Returning To The Residential Segment

29 June 2017 – Eje Prime

The real estate company in which the Mexican magnate, Carlos Slim (pictured above) holds a stake, is shaping Realia once again. The company has set itself the objective of gradually returning to the residential business, with around twenty developments. Realia is currently marketing 185 homes in three developments in Madrid, Palma de Mallorca and Barcelona.

At a meeting of its shareholders, Gerardo Kuri, CEO of Realia, said that the company’s priority over the last few months has been to clean-up and restructure its debt, according to Cinco Días. In fact, in one year, its liabilities have decreased from €1,145 million to €731 million, based on data as at May 2017.

“The most important event of last year was the financial restructuring that took place” – said Kuri – “the company had a major debt problem”. Slim has strengthened Realia’s financial lungs, with capital increases and a discount on the exchange of a loan for shares.

Moreover, last April, the company refinanced a loan amounting to €678 million.

“This year, there has been a major boost in the property developer business, with milestones, such as the debut on the stock exchange of Neinor” – explained the Director. “We are evaluating new projects and starting to construct homes because we want to have a significant real estate business”. Realia, which has traded on the stock market since 2007, is controlled by Slim through Inversora Carso (33.8% of the share capital) and FCC (36.9%).

Original story: Eje Prime

Translation: Carmel Drake

Realia’s Profits Rose Almost 7-Fold In 2016 To €115.7M

28 February 2017 – Expansión

Realia recorded a net profit of €115.7 million in 2016, compared with €17.2 million in 2015, which represents an almost seven-fold increase in earnings, according to a report submitted yesterday by the real estate company to Spain’s National Securities and Exchange Commission (CNMV).

Sources at Realia explained that this evolution in profit reflects the impact of a series of extraordinary items, including a positive variation in the value of its real estate investments, amounting to €49.2 million.

In addition, the company recorded a positive impact of €113 million, due to discounts associated with the refinancing of the residential debt and loan acquired by Inversora Carso from the bad bank Sareb.

During 2016, the group generated total revenues of €97.2 million, up by 2.4% compared to 2015, driven by an increase in revenues from promotions and land (+€7.1 million) and despite a decrease in rental income (-€4.8 million) after the Los Cubos building in Madrid was vacated – that property is now up for sale.

Meanwhile, the gross operating income (EBITDA) amounted to €41.8 million in 2016, compared with €40.5 million in 2015, which represents an increase of 3.3%.

Original story: Expansión

Translation: Carmel Drake

Santander & Bankia Join CaixaBank In €700M Loan To Realia

6 February 2017 – Expansión

The process to negotiate the refinancing of Realia is still underway. In the latest development, Santander and Bankia have announced that they will join CaixaBank in a new syndicated loan, amounting to around €700 million, which will allow the Spanish real estate company, which is controlled by the Mexican businessman Carlos Slim, to pay off its existing debt.

In this way, in addition to Caixabank, which will lead the new loan for the subsidiary Realia Patrimonio, Santander and Bankia have approved this operation. They are now looking for three more banks to join the agreement, since the idea is that six financial institutions will comprise the new syndicate, according to sources familiar with the process.

To this end, the coordinator has made contact with around thirty banks, including most major banks in Spain, as well as some foreign entities that have headquarters in Spain, such as ING, Crédit Agricole, Société Générale, Deutsche Bank, Aareal Bank and Natixis. Financial sources indicate that the players most interested in joining the process are Abanca, Sabadell, Bankinter and Popular.

The sales document containing the results of the due diligence was published on Thursday and it is hoped that the loan contract will be signed in April, which is when the real estate company’s existing debt, amounting to €680 million, is due to expire. CaixaBank engaged Deloitte in December, on behalf of the other financial institutions, to perform a feasibility analysis of the group’s properties, as well as a comprehensive due diligence; meanwhile, the law firm Uría will be responsible for drafting the new syndicated loan financing contract.

The negotiations to agree the terms of a new syndicated loan form part of the firm’s objective to fulfil its financial viability plan and reduce its level of indebtedness.

In April 2007, Realia Patrimonio carried out a restructuring of its financial debt by subscribing to a syndicated loan with two entities – Caja Madrid and Banesto. They subsequently assigned some of their exposure to 14 others entities, whereby taking the total number of FIs in the lender group to 16, for an initial maximum amount of €1,087 million, and Realia has been paying off the balance ever since. Moreover, these entities have since transferred some of the debt to other companies.

Within the framework of this strategy, at the end of 2015, Realia signed a refinancing agreement with the debt-holding entities of its residential activity – another one of the company’s business lines – whose capital pending repayment amounted to more than €800 million.

Following the restructuring of the residential business debt and after incorporating the debt outstanding on the participation loan that Inversora Carso purchased from Sareb, Realia’s gross financial debt position stood at €941 million at the end of Q3 2016, down by 46% compared to the same period in 2015.

Original story: Expansión (by R.Arroyo)

Translation: Carmel Drake

Realia Launches €147M Capital Increase

7 December 2016 – Expansión

Yesterday, Realia, the real estate company controlled by Carlos Slim, launched a preferential subscription period for its €147 million capital increase, through which the real estate group is seeking to strengthen its financial position and develop new projects.

Specifically, the company, in which Slim owns a 30.3% stake through his company Inversora Carso, and in which the construction company, FCC, which is also controlled by the Mexican businessman, holds a 37% stake, will put 184 million new shares into circulation, at a subscription price of €0.80 each. Both Carlos Slim and FCC are expected to participate in the capital increase.

In the prospectus, the company explains that the funds will be used to repay (early and in full) a loan granted by Inversora Carso, amounting to €20.4 million; and to make an early repayment of part of its loan with La Caixa, amounting to €92 million.

Moreover, the real estate group is seeking funds, which it will use to finance the construction of future residential developments.

Original story: Expansión (by R.A.)

Translation: Carmel Drake

Realia Authorises Carso’s Purchase Of Loan From Sareb

17 December 2015 – Consensus del Mercado

Realia’s Board of Directors has agreed to authorise Inversora Carso, S.A. de C.V.’s purchase from Sareb of the shareholders’ loan granted to Realia on 30 September 2009, for an initial amount of €50 million.

This authorisation has been granted under the same terms and conditions as those previously offered by Sareb to Realia, which has rejected the option of repaying the loan early due to its current financial situation.

Original story: Consensus del Mercado

Translation: Carmel Drake