Valladolid’s Town Hall Finalises Operation to Group Together its Offices in Plaza San Pablo

18 August 2018 – El Norte de Castilla

Valladolid’s Town Hall is finalising an operation to hand over plots of land to the Ministry of Justice and group together its headquarters in San Pablo.

The buyer is a listed company and, before closing an agreement with the Town Hall, needs to obtain approval from its shareholders and from Spain’s National Securities and Exchange Commission. But the operation, which is described as “good news” for the city and the municipal coffers, is in a very advanced stage. The Town Hall is finalising the drafting of the agreement with an important company, whose name has not been disclosed, which will make it possible for the El Salvador school plot to be placed at the disposal of the Ministry of Justice so that all of the headquarters located across the city can be grouped together in the San Pablo area.

The deal will work as follows. The property development firm will acquire the plots from the owner of the former education centre, pay off a significant debt that its owners have contracted with Sareb – which is estimated to amount to €10 million – and grant the El Salvador plot to the Town Hall. In exchange, the Town Hall ‘will pay’ this plot with buildability. Specifically, almost 6,000 m2 on another “very central” plot, whose location has not been revealed for the time being.

Without legal problems

According to the local Administration, the solution will resolve all of the problems and delays that an expropriation process could involve and will include the withdrawal of legal appeals that the owner company had filed against the municipal plans.

Moreover, the Town Hall will maintain the buildability of the plots next to the Zambrana school, in the Delicias neighbourhood – plots that were going to be handed over to the owners of the school as compensation for El Salvador (…).

The plan, as announced by the mayor last week, is to sign the agreement with the buyer during the month of September (…).

Original: El Norte de Castilla (by J. Asua)

Translation: Carmel Drake

Blackstone Formalises its “Hostile” Takeover Bid for Hispania

23 April 2018 – Valencia Plaza

Blackstone has submitted to Spain’s National Securities and Exchange Commission (CNMV) its request for authorisation for the takeover bid that it has launched over the Socimi Hispania, an operation worth €1.905 billion, which would see the US fund become the largest hotel owner in the country. The supervisor must now analyse whether the bid is admissible and, in the event that it deems that it is, assess the documentation for its approval. Only then will the period be opened for acceptance of the deal by the shareholders.

In this way, Blackstone has formalised its takeover bid for the hotel Socimi that it announced on 5 April, after it purchased 16.5% of the share capital from the investor George Soros and whereby became the company’s largest shareholder. The bid is effectively directed at the 83.5% of Hispania’s share capital that the fund does not yet control, by offering €17.45 per share, which brings the operation value to around €1.59 billion.

In the documentation submitted to the supervisor on Monday, Blackstone did not include any bank guarantee to secure that amount, although it did state that it would present such a guarantee within a period of seven working days that it has for that purpose. The consideration being offered by the fund represents a discount of 5.6% with respect to the share price of €18.50 at which Hispania was trading before the operation was announced publicly.

Blackstone is formalising the takeover bid after Hispania announced that it regarded the approach as hostile and that it will look for “alternatives” to the operation that improve the price proposed and, therefore, “maximise” value. The Socimi chaired by Rafael Miranda is pushing ahead with its intention to look for other options to the bid, given that prior to its formulation, and before it announced its intention to liquidate its assets by 2020, the firm had received expressions of interest from around half a dozen overseas investors.

For its part, Blackstone is looking to create a hotel asset ‘giant’, given that this deal would see it become the largest owner of this type of establishment in the country. The fund would add the 46 hotels that comprise the Socimi’s portfolio, most of which are located on the islands and in the main tourist areas of the country, to the fourteen establishments that it purchased last year from one of Banco Sabadell’s companies (HI Partners). Currently, and following the departure of Soros, Hispania’s main reference shareholders are overseas funds, including Fidelity, which owns a 7% stake, Conepa with 6%, and Bank of Montreal and BlackRock, with 3% each.

Original story: Valencia Plaza

Translation: Carmel Drake