Apollo’s Sale of Altamira Enters the Home Stretch with DoBank & Intrum as Favourites

17 December 2018 – La Información

The market for servicers is still in a spin and, following the sale of the majority of Solvia last week, now it is Altamira’s turn. According to assurances provided to La Información by sources close to the process, the US fund Apollo is facing the home stretch of the operation, which is expected to close within the next few days. Of the offers received by the US entity, those submitted by the Italian entity DoBank and the Swedish firm Intrum, have managed to make it through to the final found.

In fact, according to the same sources, it is DoBank, the former UniCredit Management Bank, that has the upper hand, in a transaction that is being led by Goldman Sachs. Currently, the entity is the largest owner of doubtful loans in Italy, and so its experience with this type of company is more than clear. Moreover, the most recent major operation that it carried out was in Greece, with the acquisition of a portfolio of non-performing loans in the Hellenic country worth €2 billion.

In total, the Italian firm currently manages more than €77 billion in loans and has agreements with most entities in its home country. For that, it employs a workforce of almost 1,200 and works with 1,600 external collaborators.

Apollo engaged Goldman Sachs last summer to carry out the sale of its servicer but after months of offers – including from Haya and Cerberus – it has decided to select the aforementioned two entities for the final round. The US fund has decided to take advantage of the good times in the market to divest and obtain profits after four years at the helm of Altamira (…).

Apollo acquired the servicer in January 2014 after paying €664 million in exchange for the 85% stake that it currently owns. Its primary function is based on the recovery management of loans from banks and the management and sale of properties proceeding from that activity. In 2017, the last year for which data is available in the Mercantile Registry, Altamira had more than 500 employees and generated an annual turnover of more than €300 million.

This servicer has become one of the major managers of financial and real estate assets in the country, with more than €53.8 billion in assets and more than 82,000 properties. Its main clients include its shareholder Banco Santander, and Sareb (…).

Intrum has already purchased 80% of Solvia

In the event that the tables turn and it is Intrum that ends up acquiring Altamira, it would be the second operation by the Swedish firm in one week. On Friday, Sabadell announced the sale of 80% of Solvia Servicios Inmobiliarios to Intrum for €300 million, whereby converting the fund into one of the new property giants (…).

The sale of Altamira by Apollo would serve to further close the door to Spain for the Americans. Since the sale of Evo Banco in September – the fund’s other major project in the country – to Bankinter, speculation has been rife regarding Apollo’s withdrawal from the Spanish market (…).

Original story: La Información (by Lucía Gómez)

Translation: Carmel Drake

Renta Corporación Fattens Up its Socimi with Flats Acquired through Suquía’s Bankruptcy

24 February 2018 – Voz Pópuli

The Socimi Vivenio, created by Renta Corporación and the Dutch pension fund APG, has reached an agreement with the Suquía group to acquire homes in Vallecas (Madrid) for a price of more than €13 million.

The real estate company Suquía, which is headquartered in San Sebastián and which was declared bankrupt two years ago, has recently reached a payment agreement with its creditors, the majority of which are financial institutions, to avoid the bankruptcy situation in which it is immersed.

During the negotiations to reach the agreement with its creditors, the company has made several deals to sell assets, including one with the Socimi Vivenio, which has agreed to purchase more than 100 homes located in a building on Calle Arte Pop, in the Vallecas neighbourhood of Madrid, for €13.54 million.

The agreement between Renta Corporación’s Socimi and Suquía values most of the homes at a price of less than €200,000, with the exception of the penthouses, which are reportedly worth more than €300,000. The sale agreement is pending authorisation by the judge of Mercantile Court number 1 in San Sebastián, which is in charge of Suquía’s bankruptcy proceedings, after having already requested it during the insolvency administration.

The creditors of the real estate company include Sareb, which has agreed that its mortgages on the homes that Vivenio is going to purchase may be cancelled simultaneously, as part of the bankruptcy process

Promociones Suquía was constituted in 1986, with a registered office for corporate and tax purposes in San Sebastián. It was declared bankrupt in December 2015. In 2016, according to the accounts filed by the company with the Mercantile Registry, to which this newspaper has had access through Insight View, it recorded losses of €1.8 million. The company ended that year with non-current bank debt amounting to €39.2 million and current bank debt of €8 million. Sources close to the real estate company indicate that following this agreement and the authorisation from the court, the company will continue with its property development activity in Bilbao, San Sebastián, and Madrid.

Renta Corporación, which has joined forces with the Dutch fund APG, plans to debut Vivenio on the stock market next year. The Socimi has set itself the objective of acquiring assets worth €1.5 billion in total, primarily properties in Madrid and Barcelona, with a minimum investment of €10 million.

Original story: Voz Pópuli (by Alberto Ortín)

Translation: Carmel Drake

Haya Reorganises Its Company Structure & Creates Haya Servicing

19 February 2018 – Eje Prime

Haya is reorganising its company structure. The real estate company, owned by the private equity fund Cerberus, has created a limited company, Haya Real Estate Servicing. This constitution forms part of the bond issue operation that the company carried out at the end of last year.

According to the Official Gazette of the Mercantile Registry, the corporate purpose of the new entity involves activities relating to the purchase, administration and sale of all kinds of real estate assets and securities.

Its share capital amounts to €60,000 and its headquarters are located on Calle Vía de los Poblados, the same registered address as the limited company Haya Real Estate, the group’s parent company. The sole administrator is Carlos Abad, the CEO of the real estate group and its legal representatives are Bárbara Zubíria Furest, the company’s Finance Director, and Ana Suárez Garnelo, Senior Legal Counsel and Secretary to the Board of Directors.

The move forms part of the bond issue that the group undertook in November last year. Then, the company debuted on the debt market by placing €475 million in guaranteed senior bonds.

For the debt issue, the group constituted a new limited company, Haya Finance, created solely to carry out that operation. Nevertheless, in the document sent to the Luxembourg stock exchange, where Haya asked for the bonds to be traded, the group revealed its intention to create a new limited company, arguing that this formula presented fewer restrictions.

“As at the date of issue, Haya is organised as a limited liability company”, said the group in the document. “In accordance with Spanish legislation, the capacity of a limited liability company to guarantee debt in the capital markets has not been tested in the Spanish courts” it continued. In this sense, Haya underlined that a limited liability company may only issue bonds worth up to twice its own resources, at most, unless the issue is guaranteed by a mortgage or joint guarantee from a credit institution, amongst others.

Nevertheless, the company also expressed that “the applicable Spanish statute does not expressly include any restrictions over the maximum amount that can be guaranteed by a limited liability company, and there is debate between the experts as to whether the aforementioned limited limitations should also apply to the guarantee interests provided by a limited liability company to guarantee debt on the capital market”.

Finally, Haya concluded that “in accordance with the trust agreement”, the principle guarantor “shall undertake to convert itself into a limited company that is not subject to the aforementioned restrictions”.

Last week, Cerberus engaged Rothschild to handle the IPO of Haya, currently worth €1.2 billion. The real estate company led by Carlos Abad currently manages a portfolio of assets worth almost €40 billion.

Founded in 2013, after Cerberus acquired the assets of Bankia Habitat, Haya has expanded its reach with the management of additional portfolios on behalf of other financial institutions such as Sareb, BBVA, Liberbank and Cajamar. During the 9 months to September, the servicer obtained revenues of €165.8 million and generated EBITDA of €89.8 million.

Original story: Eje Prime

Translation: Carmel Drake

Renta & APG Increase Their Socimi’s Share Capital by €40M

28 November 2017 – Eje Prime

In its Socimi with APG, Renta has found a business that needs developing more carefully. The company, which operates in the real estate sector, under the name Rembrandt, has just increased its share capital by €40 million, according to sources at the group, speaking to Eje Prime. This capital injection will be used to purchase new assets, which will be added to the two batches of properties that the group has acquired since its creation.

According to the records at the Mercantile Registry, Rembrandt Activos Residenciales Socimi has increased its share capital by €40 million. The company’s resulting subscribed capital is fixed at €90 million. This is the second capital injection that the company has carried out since its creation in April. The first amounted to €50 million and was completed in July.

Rembrandt carried out the purchase of its first assets in June. The company closed its first investment when it acquired two residential complexes in Navalcarnero and Rivas-Vaciamadrid, both municipalities of Madrid, for €25 million. The two assets have a combined surface area of 20,892 m2 and contain 335 rental homes (…).

Rembrandt carried out its second purchase a month ago when it bought a real estate complex comprising three buildings with a combined surface area of 20,114 m2 in Aravaca in Madrid for €50 million. In that deal, the vehicle managed by Renta Corporación purchased 156 homes with an average surface area of 102 m2 and 168 parking spaces.

€1 billion spending spree

Renta and APG have the aim of spending around €1 billion to fatten up their Socimi. Although 80% of the purchases that Rembrandt is going to carry out will involve residential assets, it does not rule out spending the remaining 20% on other opportunities. (…).

Moreover, Renta and APG’s plans for Rembrandt include debuting the company on the stock market within the next two years; they have their sights set on the main exchange. The company has its offices on Calle Velázquez in Madrid, in the same building as the headquarters of Renta Corporación in the Spanish capital. Although for the time being, Rembrandt’s team comprises exclusively Daniel Loureda, the former executive of Testa, the firm wishes to expand its structure over the next few months.

The first step has been to create a Board of Directors. Renta Corporación will put José María Cervera, the Director General of the Group, at the helm, whilst APG has reserved three seats for Martijn Vos, Raphael Villalba and Johannus Hans, all of whom are directors of the pension fund. Daniel Loureda, who is currently combining his role as the leader of Rembrandt with his position as CEO of the property developer Nidom Homes, also has a seat on the board.

In this way, Rembrandt will be one of the financial lungs of Renta Corporación over the next few years. So much so that it will help it to fulfil one of its short-term goals, which is to generate a net profit of €13 million by the end of this financial year, compared with the €4 million that the group recorded last year.

According to the latest available data, Renta is on track to achieve its objective. The group closed the third quarter with a net profit of €10.3 million, multiplying by five the €2.1 million of profit that it obtained during the same period in 2016.

Renta Corporación currently has a portfolio of assets worth €215 million, but that figure may increase to €250 million before the end of 2017, which the company considers would be “optimal” for normal operations.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

The Alcaraz Brothers Create Six New Property Developers

3 November 2017 – Eje Prime

The family office owned by the brothers Juan and Pedro Alcaraz is growing. The Alicante businessman, founders of the vehicle rental company Goldcar, have left behind their stage in the transport sector, after selling the remaining 20% stake that they still held in their rent-a-car company to invest in real estate. With this business idea in mind, the Alcaraz brothers have created half a dozen new property developer companies, according to the Official Bulletin of the Mercantile Registry (Borme).

The two brothers are adding these six companies to the five that already exist in their Alibuilding company (…). This strategy of creating a property developer for each project is a method that has been used in the past in the Community of Valencia, as was seen in the case of the creation of the Valencian property developer Attikos, by the builder Juan Armiñana.

In the province of Alicante, the family office owned by the Alcaraz brothers, Aligrupo Global Services, is building a luxury urbanisation in Calpe. And it looks like the company is planning to construct another residential development in the same town, according to Valencia Plaza.

The two businessmen currently own several assets in the real estate sector, including a property in the prime area of Velázquez, in Madrid. They also hold a 10.55% stake in the Socimi Trajano Iberia, whose portfolio includes two office buildings, two shopping centres and a logistics platform.

Original story: Eje Prime

Translation: Carmel Drake