Urbas will Receive up to €6M from its Major Shareholders

22 January 2019 – Expansión

Urbas, a company specialising in the promotion and management of land, has signed an agreement with its reference shareholders Robisco Capital Markets and Quamtium to push ahead with the repayment of its debts. By virtue of this agreement, its shareholders are guaranteeing its financial stability and allowing it to obtain liquidity in exchange for shares in the company. In this way, the shareholders are going to inject up to €6 million into the company in exchange for up to 1.75% of the share capital.

These shareholders own almost 28% of the company each, according to the latest registers from the CNMV.

Specifically, Robisco and Quamtium are going to sign a line of credit for a maximum of €2 million to equip the company with the liquidity it needs to make its current payments, at least, until the end of 2019. Moreover, the shareholders have committed to acquire debt from Urbas’s suppliers and creditors up to a maximum of €4 million.

In exchange, Robisco and Quamtium are reserving the right to acquire part of the share capital through the share subscription, said the company to the CNMV. The increases will be undertaken at a maximum nominal value of €6 million, equivalent to 1.75% of the share capital. “The agreement allows us to consolidate the structure of the balance sheet and improve the financial ratios, at the same time as strengthening the activity, developing the businesses and ratifying the trust and commitment of the main shareholders”, said Juan Antonio Acedo Fernández, who was recently appointed as the President of the Group.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Quabit Creates a Corporate Network to ‘Attack’ the Rental Market

24 April 2018 – Eje Prime

Quabit is looking to the future and is organising its business to respond to the new trends in the residential market. The company, chaired by Félix Abánades, has started to create a new corporate network under the activity of freehold properties, a business concept that is used for asset management with ownership rights. The constitution of these companies comes in response to “the evolution of the market and the importance of businesses such as the rental market”, according to explanations provided by Quabit to Eje Prime.

Specifically, the property developer has recently created four companies: Quabit Freehold Properties, Quabit Freehold Properties Levante, Quabit Freehold Properties Centro and Quabit Freehold Properties Sur, whereby covering a large proportion of the Spanish peninsula. All of the companies have their registered addresses at number 1 Calle Capitán Haya in Madrid, which is also home to Quabit’s headquarters.

In this way, the company is getting its business ready to meet the needs of new generations, who see renting as a more feasible option. These types of companies may also be the seed of a future Quabit Socimi, although sources at the company say that this option has been “parked” for the time being (…).

Quabit, recent steps

Last year and the beginning of 2018 have been very positive for Quabit. The property developer bid farewell to 2017 with a net profit of €14.4 million, which represented an increase of 80% compared to the €8 million it earned in 2016.

Moreover, the company recorded turnover of €535.7 million in 2017, although its sales fell by 83% due to a reduction in stock during 2016 and because new developments will start to be handed over this year, according to the real estate company. The market value of Quabit’s assets (GAV) as at 31 December 2017 amounted to €399.3 million.

Moreover, the group’s plans involve continuing to fatten up its portfolio with the purchase of new land to continue growing. In April, the company signed a line of credit for up to €50 million with the aim of financing the acquisition of buildable land focused on the construction of residential real estate assets.

The real estate company signed that loan with several funds advised by Taconic Capital Advisors UK and Grupo Royal Metropolitan España. Specifically, according to the agreement, the line will be used to finance 70% of the amount corresponding to the acquisition of land and taxes, whilst the remaining 30% will be financed by Quabit.

The signing of that line of credit formed part of the new investment financing scheme set out by Quabit in its Business Plan for 2017-2022 (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Quabit Signs €50M Loan with Taconic & Grupo Royal Metropolitan to Fund Land Purchases

4 April 2018 – Eje Prime

Quabit has sealed a deal to continue operating in the property development business. The company has signed a line of credit amounting to €50 million with the aim of financing the acquisition of developable plots of land focused on the development of residential real estate assets, according to a statement filed by the company with Spain’s National Securities and Exchange Commission (CNMV). The real estate company has signed the loan with specific funds advised by the companies Taconic Capital Advisors UK and Grupo Royal Metropolitan España.

Specifically, according to the agreement, the provisions of this line will finance 70% of land acquisitions and the corresponding taxes, whilst Quabit will finance the remaining 30%.

The funds must be drawn down during the first nine months of the contract, and the drawn down funds must be returned upon maturity of the line of credit, after four years, with the possibility of making early repayments and reusing the funds to finance new investments.

For each one of the projects financed, a separate company will be used in which Quabit will hold a 100% stake, albeit indirectly. These stakes will be the guarantee for the loans, leaving the land free, if necessary, for banks to finance its development.

The signing of this line of credit forms part of the new investments financing scheme established by Quabit in its business plan for 2017-2022. The company chaired by Félix Abánades recorded turnover of €535.7 million in 2017, although its sales fell by 83% due to a reduction in stock during 2016, and because its new developments are going to start to be handed over this year, according to the real estate company.

Original story: Eje Prime

Translation: Carmel Drake

Socimi Vitruvio Signs €19M Loan With Abanca

5 December 2017 – Eje Prime

The Socimi Vitruvio has paid off an outstanding debt with a new loan. The company has subscribed a financing contract amounting to €19 million with Abanca. According to explanations provided by the group, the funds will be used to repay the debt resulting from the merger by absorption of Consulnor.

The debt assumed following the merger with the real estate company Consulnor amounting to €12.7 million will be paid off thanks to this new loan. The Socimi will also proceed to cancel the line of credit granted by Banco Santander amounting to €4.6 million.

The new loan with Abanca has a two-year grace period (until 30 November 2019) and a monthly repayment schedule of 14 consecutive instalments. The interest rate that Vitruvio will pay will be fixed at 1% during the first year, before rising to 1% plus 1-year Euribor from November 2018 onwards. The loan is due to mature in December 2031.

At the end of 2016, Vitruvio and Consulnor Patrimonio Inmobiliario (CPI) signed a merger agreement whereby CPI, a real estate investment vehicle created by Consulnor (the manager in which Banca March holds a 48% stake), transferred its assets to the Socimi in exchange for shares.

After closing the operations involving CPI and Madrid Rio, Vitruvio plans to undertake new investments amounting to more than €30 million this year.

Original story: Eje Prime

Translation: Carmel Drake

Quabit Approves €110M Capital Increase To Finance Land Purchases

17 November 2017 – Expansión

On Wednesday, Quabit, the shareholders of the property developer chaired by Félix Abánades, approved several capital increases amounting to more than €110 million, which will be used to finance the purchase of land in Málaga, Costa del Sol, the Balearic Islands and the Corredor del Henares.

The purchase of these plots will be financed primarily by a line of credit amounting to €40 million, agreed with Avenue Capital Group, and by the delivery of new shares in Quabit issued at a price of €2 per share, which will represent a 27% increase in the company’s share capital. To this end, it will increase its share capital through non-monetary contributions amounting to €41.8 million, through the issue of approximately 20.9 million new shares.

Similarly, the shareholders of Quabit approved another monetary capital increase amounting to €70 million to prevent/avoid the dilutive impact of the non-monetary expansions. This increase will be completed through the issue and placement into circulation of 35 million new ordinary shares also with a maximum value of €2, recognising the preferential subscription right for all shareholders.

“The full subscription of all of the capital increases will result in the inflow of approximately €105 million and the strengthening of Quabit’s own funds, which will undoubtedly help to boost growth and to generate value for shareholders over the medium term”, explained the President, Félix Abánades.

The director added that the property developer currently has 18 developments under construction with 1,655 homes up for sale, and is working on the commercial launch of another five developments: “We will finish the year with around 2,100 homes on the market”.

According to Abánades, with all of these land operations and the portfolio of assets already owned by the company, Quabit will own almost 1 million m2 of land for the development of more than 6,700 homes. 70% of those properties will be handed over between 2017 and 2021.

The most recent acquisitions include a portfolio comprising developable land in Corredor del Henares, owned by Grupo Rayet – the main shareholder of Quabit – with a joint investment of €30 million and a buildable surface area of 131,000 m2 for the construction of 970 homes. These plots are located next to land in Alovera (Guadalajara), where Grupo Rayet is planning to build Alovera Beach, a leisure park that will soon be home to the largest artificial urban beach in Europe.

Original story: Expansión

Translation: Carmel Drake

Hotelbeds Borrows To Finance Its Own Purchase (By Cinven & CPPIB)

8 June 2016 – Expansión

Hotelbeds has had new owners for just over a month. At the end of April, the private equity firm Cinven and the Canadian fund CPPIB won the bid opened by TUI to sell the Spanish travel services supplier. They put a joint offer on the table, valuing the company at €1,165 million, which exceeded all of the other bids. Now, they are holding negotiations regarding how they will pay that price.

All indications suggest that the target company will end up paying a large portion of the bill itself, in a debt operation that is typical in private equity acquisitions. According to several financial sources, Hotelbeds is in conversations with seven banks to obtain financing, including a syndicated loan amounting to €490 million and a line of credit amounting to another €150 million.

BBVA, Morgan Stanley, HSBC, UniCredit, Deutsche Bank, Bank of Ireland and Mizuho are the entities participating in the syndicate, which is expected to be closed within the next few days and whose fruits will be used to pay for some of the acquisition.

Neither the purchaser nor the vendor has provided details about how much of the €1,165 million value assigned to Hotelbeds will be paid for in debt and how much will be paid for in cash, but some of the parties involved implied that the latter will account for more than half of the total price. Using that reference and the fact that Cinven and CPPIB are not purchasing 100% of the company, rather some of its shares will remain in the hands of the travel services supplier’s management team, then it seems likely that the €490 million syndicated loan will cover a significant part of the total financing.

Hotelbeds will pay at least 500 basis points (5.5%) above Euribor for the syndicated loan, which will have a seven year term, according to financial sources. That spread was the maximum established to begin negotiations, so it may decrease, depending on the banks’ appetite and the conditions offered by the company.

The same thing will happen with the €150 million line of credit. In that case, the term will be six years and the minimum spread will amount to 450 basis points, but the definitive conditions will not be agreed until the negotiations have been finalised. (…).

Hotelbeds’ financial results work in its favour with respect to its negotiations with the banks, according to financial sources. The supplier works with 75,000 hotels in 180 countries and recorded a turnover of €1,200 million in 2015 and an EBITDA of €117 million. In addition to hotel rooms, the company also manages transfers, trips and corporate events.

Original story: Expansión (by Inés Abril)

Translation: Carmel Drake