Tag: MoraBanc

Andorran Banks Finance FC Barcelona’s Repurchase of Land in Can Rigalt

16 October 2018 – Eje Prime

FC Barcelona has obtained Andorran financing to purchase Can Rigalt. The Catalan club has signed a €20 million loan over four years with MoraBanc to comply with the ruling won by the real estate company La Llave de Oro for the plots of land, located in L’Hospitalet de Llobregat, according to the sports newspaper Palco23.

The operation in Can Rigalt dates back to 1998 when the board, chaired at the time by Josep Lluís Núñez, acquired those plots near the Camp Nou to build a sports city. Nevertheless, the project was abandoned and it was not until 2005 when the former-President Joan Laporta managed to transfer them to the real estate firm La Llave de Oro for €35.4 million. Nevertheless, the purchase contract included a series of clauses whose breach allowed the company to undo the purchase and recover its money. And that is what has ended up happening.

The most important point and the one that ended up tipping the balance against FC Barcelona during the arbitration proceedings was the obtaining of permits to build homes. The first arbitration award established that 30 July 2014 was the deadline for the club to fulfil and ensure that the Town Hall of L’Hospitalet and the other players involved had facilitated the urban planning process. Nevertheless, the burst of the real estate bubble left the operation up in the air and the group requested a new arbitration award to resolve the operation.

That ruling came in June 2016, when the Arbitration Court of Barcelona corroborated that, after ten years, the requirements established in the purchase contract had not been met. For that reason, it forced the sports entity to return the €35.4 million that it had charged for the land, as well as some legal interest amounting to €11.6 million. The entity tried to negotiate a discount, although its annual report confirms that, in the end, it made the payments established in the ruling.

In the Camp Nou offices, there is not too much hope regarding the future of these plots, which spans 10,000 m2 and have a significant volume of buildable space. In fact, a decision was taken to impair the potential of this asset by €29 million in the accounts for 2016-2017, placing its accounting value at €8.44 million, as revealed by this newspaper. It is “a reasonable valuation established by an independent expert”, says the entity, which trusts that the evolution of technology will allow it to reduce the costs of converting the electricity sub-station next to the land and its transformation is what makes the real estate operation unviable today.

This is not the only urban planning project that FC Barcelona has faced problems with. Laporta also forecast the construction of Barça Park in 2007-2008, a thematic space, next to the Barcelona-El Prat Airport. The club paid €18.74 million for the land, but never managed to overcome the administrative procedures due to the breach of several environmental rules that prevented the development there of any kind of sporting, leisure or training activity. Last year, it applied an additional depreciation of €1.13 million and today its value amounts to just €3.07 million.

Original story: Eje Prime (by M. Menchén)

Translation: Carmel Drake

Colonial Pays Its First Dividend In 10 Years

5 July 2016 – Expansión

Colonial will distribute a gross dividend of €0.015 per share to its shareholders today.

Colonial is making dividend distributions again, ten years after it suspended such payments to its shareholders. The real estate company is rewarding its shareholders now that it has completed its recent restructuring and after closing 2015 with a profit of €415 million and a record number of lease contracts.

Colonial will thereby become the first real estate company of those that have managed to overcome the crisis to start paying dividends again, after it also became the first to achieve an investment grade rating from a ratings agency in 2015.

As such, with the recovery of payments to its shareholders, the company has definitively completed the process to clean up, restructure and return to growth that it embarked upon a few years ago and which involved the entry of new shareholders into its capital.

Currently, Colonial’s two largest shareholders are the Qatari sovereign fund, with a 13% stake and the Grupo Villar Mir, with a 9.2% stake, which will thereby receive €6.23 million and €4.43 million in dividends, respectively.

The company’s new third largest shareholder, the Mexican group Finaccess, will receive €4.3 million for the 8% stake that it just purchased in the company in exchange for a batch of assets.

The other high profile shareholders of the real estate company include the Andorran bank MoraBanc, which holds 7%, the Colombian group Santo Domingo (6.8%), the British billionaire Joseph Charles Lewis (5%), the Reig group with a 2.5% stake and several investment funds, which hold between 1.9% and 3% each.

Following the capital increase, which saw the entry of two new shareholders (Finaccess and Reig), and the dividend payment, Colonial is now waiting to carry out another item on the agenda approved at the last General Shareholders’ Meeting: a “reverse share split” of ten shares for one.

The company chaired by Juan José Brugera defines all of these operations within the growth strategy that it is currently undertaking, which has involved expanding the business focus, beyond its three traditional markets (Madrid, Barcelona and Paris) to analyse operations in other European capitals.

Original story: Expansión

Translation: Carmel Drake

Joseph Lewis Increases His Stake In Colonial To 5.08%

16 September 2015 – El Mundo

The English businessman Joseph Lewis has increased his shareholding in Colonial from 3% to 5.08% and so his stake is now worth €91.3 million on the basis of the company’s current market price.

Lewis increased his stake in the real estate company to more than 5% on 10 September 2015, i.e. on the day after Grupo Villar Mir put 10% of the share capital it owned in the real estate company up for sale, according to the records of Spain’s National Securities and Exchange Commission (CNMV).

Specifically, the British investor acquired 66.13 million shares in Colonial, representing 2% of its share capital, worth around €37 million. Following this investment, Lewis owns 162.16 million shares in the real estate company in total, which represents a 5.08% stake.

The business tycoon hereby strengthened his position as a shareholder of the real estate company, in which he first acquired a stake in January 2015. Grupo Villar Mir continues to be Colonial’s largest shareholder, with 14.5% of the share capital.

Amongst Colonial’s other important shareholders are the Qatar sovereign fund, with a 13.3% stake; the Andorran bank MoraBanc with 7%; the Colombian group Santo Domingo (6.8%) and several other investment funds, whose stakes range between 1.9% and 5%.

The real estate company closed trading on Monday with more losses, making it the third consecutive day of decreases since 9 September, when at the close of business, Villar Mir announced its divestment, for €0.56 per share.

During the first trading session of the week, the company’s value decreased by 1.75%, taking its share price to €0.563, in line with that selling price.

Original story: El Mundo

Translation: Carmel Drake