Árima to Increase its Capital by €50M to Repay Debt & Purchase Assets

2 April 2019 – Expansión

The Socimi Árima, led by Luis Alfonso López de Herrera-Oria (pictured below), is going to carry out a capital increase of up to €50 million (expandable upon demand), which will be used to early repay a €30 million loan signed with CaixaBank, as well as to purchase new assets.

The company hopes to incorporate new investors through this operation, which will see its share capital increase by 50%, whereby providing more liquidity for its equity.

The capital increase will comprise the issue and launch into circulation of 5 million new ordinary shares with a nominal value of €10 each, which will be issued without an issue premium. It will be carried out through an accelerated placement aimed at qualifying and institutional investors.

The company’s asset portfolio amounts to €121 million, spans a gross leasable area of 29,000 m2 and includes more than 460 parking spaces in the office sector in Madrid.

Original story: Expansión 

Translation/Summary: Carmel Drake

Realia Completes its €149M Capital Increase

2 January 2019 – Eje Prime

Realia has completed its capital increase. The real estate firm owned by the Mexican magnate Carlos Slim has completed its €149 million capital increase with a final injection of €42.1 million, according to a statement filed by the company with Spain’s National Securities and Market Commission (CNMV).

In its latest expansion phase, the company has issued 175.4 million new shares in total, for a nominal value of €0.24 and an issue premium of €0.61 per share. The company’s share capital has thereby been consolidated at €197 million, divided into 820 million shares.

Since Slim took control in 2015, Realia has undertaken three capital increases in total. The latest is the operation closed today, which was approved in November to try to decrease the company’s debt, which amounts to €672 million, and to provide a financial boost to its real estate businesses.

Slim controls 70.76% of Realia’s capital, 33% in a direct way and 36.98% through the construction group FCC, which is also led by the Mexican businessman. The real estate company also has an asset portfolio spanning approximately half a million square metres, which includes one of the Kio Towers in Madrid.

Original story: Eje Prime

Translation: Carmel Drake

Saba Delays AGM by 1 Month to Finalise New Ownership Structure

3 May 2018 – Expansión

Never before has an ordinary general meeting of Saba’s shareholders raised so much expectation. The parking lot company, in which Criteria Caixa holds a 50.1% stake, has delayed the shareholders’ meeting that it had planned to hold in Barcelona on 9 May, postponing it until 12 June. The reason is that the shareholders still need to agree on the changes in their stakes in the parking lot company.

Its been a while since Torreal, which owns 20% of Saba; KKR, which holds 18.5%; and ProA, which owns 10.5%, expressed their intention of divesting their stakes in the company, a move that is logical for funds, which typically rotate their portfolios every few years.

But Criteria Caixa, which is in a position to buy, in light of the proceeds amounting to €3 billion that it is going to receive over the next few months when it sells its stake in Abertis, has initiated conversations with the other three major shareholders to take control of the company. The remaining 1.2% of the shares, which are owned by small investors, proceed from the time when Saba belonged to Abertis.

In parallel, Criteria is also planning to hold a Board Meeting at the end of this month to define the final position of its investment portfolio. Sources consulted assure that a decision will be taken at that meeting as to whether to take over complete control of the company led by Josep Martínez Vila or to sell its stake. In theory, all indicators are that Criteria Caixa will become Saba’s sole shareholder.

Finishing touches

During the extra month that they will now have, the shareholders are going to close all of the details to approve the changes in their shareholding. Meanwhile, Saba has justified the change of date in “the greater social interest and for reasons beyond its control”. Nevertheless, some parties were in favour of holding the meeting and organising another extraordinary meeting later on, once the shareholder restructuring has been agreed.

The aspects to be discussed include the distribution of a dividend amounting to €19.95 million, charged against the issue premium; the approval of the results; and, as the fifth item on the agenda, the re-election and appointment of the directors.

Criteria is going through a time of enormous liquidity due to the funds that it is going to receive when it sells the 18% stake that it holds in Abertis and because it has not participated in any large operations since it divested its 10% stake in Gas Natural Fenosa, for which it obtained €1.8 billion.

Saba, chaired by Salvador Alemany, is worth around €1.4 billion, on the basis of a multiple of between 12 and 14 times its EBITDA, which amounts to around €100 million. The company manages 195,000 parking spaces and, in 2016 – the most recent year for which data is available – it recorded revenues of €205 million (+17%) and obtained EBITDA of €94 million (+10%) (…).

Original story: Expansión (by Artur Zanón)

Translation: Carmel Drake

Residential Rental Specialist VBare Launches €14.1M Capital Increase

4 April 2018 – Eje Prime

VBare is pushing ahead with its business plan and is continuing to put together its perfect portfolio of assets. The company, which specialises in the acquisition of residential buildings, has launched a €14.1 million capital increase through which it is hoping to acquire new properties in the main cities in which it operates, according to sources at the real estate group speaking to Eje Prime.

“On 23 March, the company’s Board of Directors approved an increase in the share capital up to a maximum of €5,310,465.00, with the aim of continuing with its growth and investment acquisition strategy, as set out in its business plan, through the issue of a maximum of 1,062,093 ordinary shares”, explain company sources.

VBare’s new shares will be issued with a nominal value of €5 plus an issue premium of €8.30 per share, resulting in an issue price of €13.30 per share. “The total amount of the capital increase, in the event that it is subscribed in its entirety, will amount to €14,125,836.90, in other words, €5,310,465.00 as share capital and €8,815,371.90 as the issue premium”, they add.

The funds obtained through the capital increase will be used to equip the company with the capital resources necessary to continue with its expansion and growth strategy, “through the acquisition of identified real estate assets that fulfil the criteria established in the strategic guidelines, as well as allowing it access to external sources of financing with the aim of achieving the target returns”, say sources at the Socimi.

The products that the Socimi is going to consider acquiring once it has completed this capital increase include “entire buildings, portfolios of (geographically) scattered assets and portfolios of assets in the same complex, with the aim of maintaining a balanced portfolio to avoid concentration risks, and to obtain a competitive advantage over other players in the market, involving the identification of opportunities with limited competition and the achievement of below market prices”.

Moreover, the company’s roadmap involves acquiring assets with a net direct asset yield of “no less than 4%, as well as properties that it can acquire for an average discount over the market value of no less than 10% overall”.

In March, the company acquired a package of assets comprising 12 homes and a commercial property at number 5, Calle Concordia in the Madrilenian town of Móstoles, according to a report submitted by the group to the Alternative Investment Market (MAB).

Of the twelve homes that it acquired from the Eureka business group, five of them have tenants and the others are “in optimal conditions to be let out immediately”. The net yield on these assets is estimated to amount to 5.9% when they are fully occupied.

“VBare’s objectives for 2018, which it presented together with its results for last year, include, not only to generate returns from its assets when the portfolio is fully operational, but also to make investments in other cities, besides Madrid, wherever the firm expects a potential increase in rents in the short-medium term”, explain sources at the group.

VBare is a real estate investment vehicle specialising in the acquisition and management of residential assets for rent. The company was constituted in March 2015 (…) and currently manages a portfolio of 197 assets. To date, the company has analysed assets worth more than €500 million and it is constantly on the lookout for new business opportunities within the scope of its investment policy.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Nyesa Signs Non-Monetary Capital Increase of €17M with Brickstock

12 March 2018 – Eje Prime

Nyesa is continuing to win shareholders and develop its portfolio following its return to the stock market. The real estate firm has signed a contract with the Socimi Brickstock and its reference shareholders to undertake a non-monetary capital increase amounting to more than €17 million, as reported by the company to Spain’s National Securities and Exchange Commission (CNMV).

The agreement provides for the contribution of all of the shares of the Spanish companies Desarrollos Comerciales Plainet and Liber Iudiciorum. The first of the companies owns an asset portfolio comprising 2,453 m2 of retail premises and terraces in Fuerteventura, a retail premise in Barcelona, buildable land in Madrid for the construction of four homes and a buildable plot in Toledo for the construction of 52 homes. Meanwhile, Liber Iudiciorum owns two stores in the Gorbeia Multicines (Vitoria-Gasteiz) and Parque Rivas (Madrid) shopping centres, with a gross leasable area of 6,971 m2 and 4,797 m2, respectively.

For the time being, the capital increase operation is conditional upon Nyesa giving the green light to the technical, legal, tax, labour, financial and urban planning reviews of the two companies and to the shareholders of the companies accepting the valuation assigned to their shares.

The company is planning an issue rate of €0.06 per share for its capital increase, of which €0.015 corresponds to the nominal value and €0.045 to the issue premium.

Following this operation, Brickstock would hold a percentage of less than 13% of Nyesa’s share capital. Moreover, the Socimi has signed an agreement to not sell all of its shares in Nyesa for at least six months and to not sell half of its shares for at least one year.

Original story: Eje Prime

Translation: Carmel Drake

Nyesa’s Share Price Soars by 23% as it Announces Negotiations with Spanish Investor

9 March 2018 – Eje Prime

The stock market is rewarding Nyesa. The company has seen its share price soar by 23% due to negotiations with a Spanish investor. The company has informed Spain’s National Securities and Exchange Commission (CNMV) that it is negotiating an investment contract to not only carry out a non-monetary capital increase but also to incorporate new real estate assets into its portfolio in Spain.

“The investment contract establishes that the capital increase is conditional upon Nyesa considering that the technical, legal, tax, labour, financial and urban planning reviews of the assets to be contributed are undertaken in a completely satisfactory way”, say sources at the group. “Moreover, the deal will also be subject to the investor accepting the new valuation of the assets to be contributed, based on a preliminary valuation of more than €17 million”, they conclude.

The forecast issue rate for the capital increase is €0.060 per share (of which €0.015 corresponds to the nominal value and €0.045 to the issue premium). In this regard, it was also reported that as a consequence of the execution of the capital increase, the investor would reach a percentage stake of less than 13% in the share capital of Nyesa Valores Corporación.

The operation forms part of the process to search for partners, investors and real estate projects that help to define and support the strategy and strengthen the development of the company’s business. Specifically, with the execution of this capital increase, the company’s equity position would be strengthened through the incorporation of assets that generate recurrent income.

Original story: Eje Prime 

Translation: Carmel Drake

Catalan Socimi Quonia Increases its Capital by €26.5M

8 January 2018 – Eje Prime

Quonia is starting 2018 with the financial ammo it needs to continue growing. The Catalan Socimi has just closed a capital increase amounting to €26.5 million, which it intends to use to carry out new purchases and fatten up its asset portfolio, according to explanations provided by the group to Eje Prime.

Last week, Quonia’s Board of Directors agreed to increase its share capital by a maximum of €12,629,797, through the issue and launch into circulation of a maximum of 12,629,797 ordinary shares with a nominal value of €1 each, of the same class and series as the shares currently in circulation and represented through book entries”. The capital increase will be disbursed through monetary contributions.

Likewise, the Socimi has agreed to issue shares at an issue rate of €2.10 per share, €1 of which corresponds to the nominal value of the shares and €1.10 to the issue premium. The total cash amount of the issue will, therefore, amount to €26,522,573.70, of which €12,629,797 will correspond to the share capital (nominal) and €13,892,776.70 to the issue premium, according to sources at the group.

Quonia will spend all of the funds obtained through this capital increase on equipping the Socimi with the “capital resources necessary to develop its activity, as well as on facilitating access to external financing sources to reach a maximum leverage level of 50%”.

“The objective of the increase is to obtain resources to continue growing and to take advantage of the real estate opportunities that will continue to arise on the Iberian Peninsula over the coming months”, say sources at the company. “Currently, the company is in the process of analysing and evaluating different assets for sale to use them for leasing”.

As Eje Prime revealed, Quonia has decided to expand its spectrum of acquisitions to include Madrid and Sevilla, whereas until now, it has focused almost entirely on Barcelona. Quonia, a vehicle managed externally by Rusiton XXI, a manager specialising in real estate investment and with solid financial experience, acquired a property at number 60 Passeig Joan de Borbó, in Barcelona, one of the most touristy areas of the Catalan capital, in March for €7 million.

Following that acquisition, Quonia’s portfolio comprised six assets, located in Barcelona, Asturias and Sevilla. The Socimi, which made its debut on the Alternative Investment Market (MAB) in July 2016, acquired Hotel Internacional, located at number 78 La Rambla de Barcelona, for €11.25 million, soon after it started operating in the sector (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Zambal Acquires 2 Office Buildings in Madrid for €70M

4 December 2017 – Eje Prime

Zambal is continuing to gain ground as one of the star Socimis in the office sector in Spain. The company, managed externally by IBA Capital Partners, an independent private equity firm specialising in real estate investments, has just invested €70 million in the purchase of two office buildings in Madrid, according to sources at the group.

The company formalised its purchases in November. The first is an office building located at number 96 Calle Santiago de Compostela, in Madrid. The building has a gross leasable area of 14,317 m2 and 182 parking spaces. Currently, the building is leased in its entirety to the Community of Madrid.

The Socimi has also added another property to its asset portfolio in Madrid. That building is located at number 44 Calle Lérida and has a gross leasable area of 4,039 m2. It is currently leased to Gas Natural. According to the group, both acquisitions “have been financed in their entirety using own funds and financing from the main shareholder”. On 23 November, Zambal formalised a loan with Altaya for €60 million.

Moreover, between May and July this year, the company launched a €91 million capital increase on the market through the issue and launch into circulation of 91.2 million shares with a nominal value of €1 each and an issue premium of €0.25 per share, as revealed by Eje Prime. The aim of that capital injection was to add new properties to its portfolio.

With these latest purchases, the Socimi has fattened up its asset portfolio, worth more than €730 million. These two office buildings are the first assets that Zambal has acquired in 2017. Prior to that, the most recent asset that the Socimi added to its portfolio was Gas Natural’s headquarters in Madrid, for which it paid €120 million. That property is located at number 77 Avenida de San Luis in Madrid and is leased in its entirety to Gas Natural (…).

Management team 

The Socimi is managed by executives who have extensive experience in the Spanish and European real estate markets. The head of the company is Thierry Julienne, founding partner of IBA Capital Partners and President of the Socimi. Before taking over the reins of Zambal, the executive was Director of Constructa Asset Managment in Spain and Portugal, Director of the Capital Markets Department at Auguste-Thouard, Co-founder and Director at EXA Real Estate Advisors and founder of Abedo Asset Management.

The executive Jesús Valderrama works alongside Julienne leading the company. He started his career in the international department at Eurohypo and later went on to serve as the bank’s Director of Operations in Spain. Julienne and Valderrama are accompanied by Beltrán Martínez, Administrative and Finance Director of IBA Capital, and Maria Gistau, Director of the Asset Management team at Zambal, who has held several positions of responsibility in companies such as Sonae Sierra.

Zambal has one major shareholder, the company Altaya, which is domiciled in Singapore. The company’s portfolio is primarily focused on buildings used for office and commercial purposes. By region, Madrid accounted for 80% of the Socimi’s rental income in 2015, and Barcelona the remaining 20%.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Kingbook Injects €22M to Offset Losses & Buy New Assets

29 November 2017 – Eje Prime

Kingbook is reorienting its financial situation. The Socimi, which specialises in gas stations, has announced a capital increase amounting to €21.6 million to offset its losses, according to explanations provided by the company. The company, which is owned by GL Europe Reit, which owns a 60% stake, and JZ Real Estate, with a 40% stake, will use this capital injection to eliminate a considerable part of its current liabilities and to increase its own funds.

According to the information document prepared by Kingbook, “the purpose of this increase is to resolve the company’s equity imbalance”. This increase has been subscribed by Holdreit in its entirety, the company’s sole shareholder. On 11 July, the company decided to increase its share capital by €4.52 million, through the issue and launch into circulation of 4.52 million new shares with a nominal value of €1, through the offsetting of credits, with an issue premium that amounted to €17.1 million in total. At present, “the company is waiting for final approval from the Alternative Investment Market (MAB) before its share price reflects the increase in value resulting from the capital increase, which should happen within the next few days”, according to the group.

The report also highlights that the Socimi has incurred losses since it started operating. As at 30 September 2017, the result for the year was negative, with losses of €1.25 million. The group has seen its losses increase, given that during the same period last year, it made a loss of €767,390. “Following this move, the company’s equity position has been restored, with own funds of €23.3 million”.

Nevertheless, Kingbook has a solid portfolio of assets to continue operating for the next few years, which it has managed to increase by 21.5% over the last year, to €38.9 million. The company owns land worth €10.3 million and buildings worth €20 million, compared with €16.3 million a year ago.

Moreover, in the last year, Kingbook has added more than a dozen gas stations to its real estate portfolio. The company has acquired gas stations in León, in San Andrés de Rabanedo, for €900,000; in Cantabria, in Castro Urdiales, for €1.4 million; and in Burgos, in Miranda del Ebro, for €2.3 million, amongst others. Kingbook has spent €7.5 million on new acquisitions in total so far this year.

Moreover, the company announced in October that it is in the process of expanding its asset portfolio into other business areas besides gas stations.

Although the group explained that it has achieved high levels of efficiency in the management of its portfolio thanks to its specialisation, it has indicated that it does not want to limit its activity to a niche as specific as gas stations, given that it considers that “it has the financial potential and management resources to venture into other areas and to achieve competitive returns”.

In terms of the new business areas that Kingbook is exploring to incorporate into its portfolio, potential assets include parking lots and other infrastructure linked to the world of transport.

The Socimi currently manages 57 real estate assets where fuel distribution activities are carried out (gas stations) and also owns one hotel and one industrial warehouse (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Vitruvio Completes Its Merger With Consulnor

25 September 2017 – Eje Prime

Vitruvio has completed its corporate operation. On 13 September, the Socimi finalised the merger by absorption of Consulnor Patrimonio Inmobiliario, as agreed at the General Shareholders’ Meeting in June. In this way, Consulnor Patrimonio Inmobiliario has transferred all of its assets to Vitruvio, according to sources at the company. Following this change in structure, the Socimi will see its revenues soar next year to €6 million and its Board of Directors will change.

Following the merger, Vitruvio will manage a portfolio of real estate assets with a gross value of €103 million and will generate an estimated turnover of €5.2 million for this year. Thanks to the new assets, the company will have greater capillarity in the country and a more diversified portfolio of properties; it will also see an increase in its average profitability.

According to both groups, the operation will result in growth in terms of gross assets of almost 70%, “with a significant increase in revenues and profitability for shareholders”. Moreover, the company has highlighted a series of advantages that the merger of the two groups generates, including an increase in the shareholder base.

“The incorporation of Consulnor Patrimonio Inmobiliario brings with it the entry of around 70 new shareholders to the Socimi’s structure, including some institutional players, which means an increase in the marketability of the shares”, say sources at Vitruvio. Another key to the merger, according to the company, is the increase in turnover, which will result in “guaranteeing the remuneration policy for shareholders” (…).

The operation has been articulated through a €16.29 million capital increase in Vitruvio, through the issue of 1,629,907 new shares of the same class as those already in circulation with a nominal value of €10. Those shares have been issued at an issue premium of €3.20 per share and have been subscribed by the shareholders of Consulnor Patrimonio Inmobiliario. Following the merger, the market capitalisation of Vitruvio will be set at €64 million.

In terms of assets, on 25 May, Vitruvio subscribed to an “exclusive and binding” agreement to obtain a building for hotel use in Madrid for a value of between €11 million and €12 million. Although the company has not provided any more details about the operation, it has explained that the estimated annual rent from the property will amount to more than €650,000, “which represents a net return of more than 5.55%” (…).

New Board of Directors

As part of the agreement between Vitruvio and Consulnor Patrimonio Inmobiliario, the Board of Directors of the resulting company, which will retain the name Vitruvio, will result in the entry onto the Board of four new members. Most notably, Pablo de la Iglesia, Director General of Consulnor, will joins the Board of Directors of Vitruvio, having worked for other companies such as Barclays and Jopa Family Office.

José Antonio Torrealba will also have a seat on the Board of Vitruvio (…). José Ignacio Iglesias will be the representative of the Voluntary Social Welfare entity Araba Eta Gasteiz Aurreski Kutxa II (…). Finally, the fourth new member of the board will be Sergio Álvares, who is also an existing board member of Consulnor Patrimonio Inmobiliario.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake