Acciona Sells a Building in Madrid to IBA Capital for €50M

21 December 2018 – Eje Prime

Acciona Inmobiliaria is continuing to divest. The company chaired by José Manuel Entrecanales has sold a building in the Spanish capital to IBA Capital for around €50 million The asset houses some of the criminal courts for the Community of Madrid.

The building, which has a surface area of 20,000 m2, is located at number 31 Calle Albarracín, in the Julián Camarillo area. With this operation, advised by JLL, the courts have a new landlord, according to reports today from Cinco Días.

This is not the first sale that Acciona has undertaken so far this year. The company has divested some of its office properties and hotels in recent months, as part of its divestment plan carried out with the aim of rotating capital to reinvest in other segments.

For its part, IBA Capital is a manager of real estate funds founded in 2013, which manages assets worth €1 billion. The company also manages the Socimi Zambal, which focuses primarily on the office and commercial sectors.

Original story: Eje Prime

Translation: Carmel Drake

Acciona Buys More Land on which to Build 4,500 Homes

27 February 2018 – Europa Press

Acciona has accelerated its property development and house sales businesses by investing in the purchase of developable land, in such a way that it now owns a portfolio of land on which to build around 4,500 homes, which it plans to continue increasing.

The group chaired by José Manuel Entrecanales (pictured above) forecasts that the resumed real estate activity will start to contribute to the income statement next year.

Two years ago, Acciona took the decision to recover its real estate division with the aim of generating value from the assets that it still held in the sector in light of the reactivation that the business was starting to show in Spain following the crisis.

Thus, in terms of its real estate assets, the company merged its rental homes into Testa Residencial, the Socimi in which Santander, BBVA, Merlin Properties and now the group itself hold stakes, and which is planning to make its debut on the stock market next quarter. Moreover, it is proceeding with the sale of the rest of its assets (hotels and offices) on an individual basis.

In terms of its property development activity, Acciona resolved to return to building on the land portfolio that it had, whereby taking advantage of the recovery in the sector.

Nevertheless, the company has given a boost to that initial business plan and has dived into the purchase of new land. Specifically, over the last year, the firm has purchased plots worth €82 million with capacity for the development of around 1,400 homes.

In this way, Acciona currently has a land bank for the construction of 4,500 apartments, more than triple the amount that it had a year ago.

Nevertheless, the group has expressed its interest in continuing to invest in land both in Spain as well as in the other two markets where it has a presence in the real estate sector: Mexico and Poland, according to the company’s Director of Corporate Development, Juan Muro Lara.

The group calculates that it will allocate around 20% of its average annual investment, which amounts to between €900 million and €1 billion to the development of this revived business, including both the purchase of land and the construction of homes.

Original story: Europa Press

Translation: Carmel Drake

Acciona & Merlin Finalise Merger Of Their Rental Home Subsidiaries

10 July 2017 – Linked In

Acciona and Merlin are finalising the merger of their respective rental home subsidiaries, Acciona Real Estate and Testa Residencial, in an operation estimated to be worth €350 million, which will give rise to the creation of the largest rental home company in the country. At least that much is clear from the comments made by the President of the construction and renewable energy group, José Manuel Entrecanales, who estimates that the “operation with Merlin” will be completed “before the summer”. “We have been negotiating with Merlin for a long time and I think that we will know whether or not it will go ahead within the next few weeks, probably before the summer; and in my opinion, it will”, said Entrecanales following the company’s General Shareholders’ Meeting.

When the operation materialises, Acciona will fulfil its objective of finding a strategic exit for its real estate business, which it grouped together in the subsidiary Acciona Real Estate in 2015, after it withdrew its plans to debut it on the stock exchange last year.

By virtue of the transaction, Acciona will transfer its portfolio of 1,382 rental homes to Testa and in exchange will become a major shareholder in the resultant company, with a stake “of just under 30%”, according to the President of the group.

This portfolio of homes is worth €350 million and most of them (73%) are located in Madrid. Meanwhile, with this operation, the Socimi led by Ismael Clemente (pictured above) will receive a new boost for the growth of Testa Residencial, the subsidiary that it constituted last year together with Santander, BBVA and Banco Popular with homes that it ‘inherited’ from the merger with Metrovacesa and which it does not consider strategic.

New giant

The integration with Acciona will consolidate Testa Residencial’s position as the largest rental home company in the country. One of its objectives over the medium term is to debut on the stock market. The sum of the assets of the two companies will give rise to a new Testa Residencial, which will have a combined portfolio of around 9,400 homes for rent. Currently, Santander is the largest shareholder of this company, with a 44.3% stake, ahead of BBVA with 33.5%, Merlin (16.10%) and Banco Popular (3.9%).

It will be a new real estate giant, unprecedented in Spain until now, whose birth coincides with the recovery that is being seen in the real estate Sector in Spain, as well as an increase in the rental market with respect to the purchase of own properties.

In terms of the other assets that Acciona holds in its real estate division, including several hotels and office buildings, the company is planning to sell them off gradually. And with its land portfolio, it recently announced its return to the residential sector with the development of new homes.

Original story: Linked In (by Jordi Brun)

Translation: Carmel Drake

Acciona Real Estate Set To Merge With Testa Residencial

22 May 2017 – ABC

Acciona and Merlin are finalising the merger of their respective rental housing subsidiaries, Acciona Real Estate and Testa Residencial, in an operation estimated to be worth €350 million. The deal will result in the creation of the largest rental home company in the country.

That is according to the President of the construction and renewable energy group, José Manuel Entrecanales, who expects that the “operation with Merlin” will be closed “before the summer”.

“We have been holding negotiations with Merlin for a while and I think that we will decide whether or not to go ahead with the deal within the next few months, probably before the summer, although in my opinion, we will”, said Entrecanales following the company’s General Shareholders’ Meeting.

When the operation comes to fruition, Acciona will fulfill its objective of finding a strategic exit for its real estate business, which it carved out into the subsidiary Acciona Real Estate in 2015, and after it decided against listing it on the stock market last year.

By virtue of the transaction, Acciona will transfer its portfolio of 1,382 rental homes to Testa in exchange for becoming a key shareholder in the resultant company with a stake of “just under 30%”, according to the President of the group.

The portfolio in question contains homes worth €350 million and the majority (73%) are located in Madrid.

Meanwhile, with this operation, the Socimi led by Ismael Clemente will give a new boost to the growth of Testa Residencial, the subsidiary that it constituted last year together with Santander, BBVA and Banco Popular, with the homes that it “inherited” from the fusion with Metrovacesa and which it did not consider strategic.

A new giant

The integration with Acciona will establish Testa Residencial’s position as the largest rental home real estate company in the country. One of the entity’s many objectives includes debuting on the stock market.

The merger of the two companies would give rise to a new Testa Residencial, which would own a portfolio of around 9,400 rental homes. Currently, Santander is the largest shareholder of the company, with a stake of 44.3%, ahead of BBVA with 33.5%, Merlin (16.10%) and Banco Popular (3.9%).

This is a new real estate giant, unprecedented in Spain until now, whose creation coincides with the recovery that the real estate sector is experiencing in Spain and the increase in the prominence of the rental market with respect to home purchases.

In terms of the other assets that Acciona holds in its real estate division, specifically, several hotels and office buildings, the company is planning to sell them off gradually. With the land portfolio, it recently announced its return to the residential business through the promotion of new homes.

Original story: ABC

Translation: Carmel Drake

Acciona’s Future – Positive Outlook But What Next?

12 June 2015 – Expansión

Acciona’s Chairman, José Manuel Entrecanales, says that the Group’s restructuring has been completed and that the company is now looking to re-launch itself.

The construction and services group Acciona, which held its annual general shareholders’ meeting yesterday, expects to take a decision regarding the future of its energy and real estate activities before the end of the year. It is exploring the option of listing some or all of its business on the stock market in 2016, according to José Manuel Entrecanales, who spoke at the end of yesterday’s meeting. His comments come just a few weeks after Acciona announced that it is considering adopting the Socimi format for its real estate division. Socimis have operating assets that generate yields, and whereby often promise high dividends.

New partners

As an alternative to the real estate listing, or in parallel to it, Entrecanales is also considering ushering in a new shareholder. The Group has already gone down that route for its renewable assets outside of Spain, for which it has signed a partnership with KKR.

Regarding renewables, Entrecanales confirmed that the group is now analysing several alternatives to the ones it was initially considering. The option of publicly listing its overseas renewable assets on the US stock exchange, once KKR acquired 33% of those assets, has been parked for the time being. Now, it is analysing the possibility of listing all of its assets, including the Spanish ones, and even doing so on the Spanish stock market.

Entrecanales said that the options for going public in the USA or Europe are well matched at the moment. He also indicated that the new proposal has been made in conjunction with KKR.

Entrecanales said to the shareholders that “both the real estate and energy activities may be susceptible to independent access to the equity markets”, although he said that the process is being subjected to internal review.

Transmediterránea and Bestinver

As for the future of the Transmediterránea subsidiary, the Chairman of Acciona said that the outlook is now “optimistic” after the restructuring that has been undertaken and that, as a result, the group has decided to “defer any corporate transactions involving sales, mergers or the entry of new shareholders, at least until the results clearly reflect the true value of the company”

Regarding the other subsidiary, Bestinver, which suffered from the “sudden” exit of its management team last year, Entrecanales said that it has overcome its “troubles” and that the company now has the management team it needs to “face a bright future”.

As such, Entrecanales envisages a new phase of growth and expansion for the group, after going through what he refers to as a “hard stage” over the last two years, during which time the group “has faced one of the toughest challenges in its history”.

Entrecanales downplayed the latest incident that took place this week, when the company was excluded from the Ibex 35 due to its low trading volumes. “It is not a big deal” said Entrecanales. He has no plans to adopt any special measures to try to return the company to the Ibex, such as for example, undertaking a share split to give more liquidity to the securities.

Original story: Expansión (by Miguel Angel Patiño)

Translation: Carmel Drake