Tag: Pimco

Sacyr Seeks Investors To Inject €300m Into Testa

4 February 2015 – Expansión

Operation Accordion / The construction company will receive contributions from its subsidiary amounting to €1,180 million, as the preliminary step in the placement of up to 30% of its capital with institutional investors.

Yesterday, in a whirlwind shareholders meeting, Sacyr gave the go ahead for Testa, its real estate management company, to carry out a significant internal restructuring with the dual-objective of enabling it to pay multi-million debts to its parent and at the same time, strengthening its balance sheet from the inflow of funds through a capital increase on the stock market.

Specifically, Testa’s shareholders renewed the mandate to the Board of Directors (led by Fernando Lacadena, the new CEO, who replaced Daniel Loureda) to conduct an operation to return €1,197 million to its shareholders through an extraordinary dividend payment of €527 million and a reduction in capital of €669 million, within the next year.

Sacyr will be the main beneficiary since it controls 99.3% of Testa’s share capital. This operation is subject to a simultaneous capital increase, to allow Testa to reconstruct its balance sheet through an IPO, which has a minimum target of €300 million.

IPO

The two operations are closely linked, which is why Sacyr has taken its time to sound out the market and determine the level of investor interest in Testa. The intention of the group, chaired by Manuel Manrique, is to carry out a placement through an IPO aimed at institutional investors. In parallel, Sacyr also plans to divest some of its stake, although how much it will relinquish has still to be determined. In any case, the construction company wants to retain its role as the controlling shareholder, and so its stake after the sale will not fall below 70%.

(…)

Testa’s shares closed trading yesterday at €19.30 per share, after a strong rise of 7.3%. The company’s market capitalisation amounts to €2,230 million, which means that at current market prices, the sale of a 25% stake would generate income of €550 million.

In a second phase, Sacyr’s objective is to convert Testa into a Socimi (a real estate company that pays out 85% of its profits in dividends). This new type of company, which benefits from significant tax exemptions, has attracted interest from reputed investors such as George Soros, John Paulson and large funds, including Pimco.

For Testa, the new Socimi structure would have the advantage of starting out with a large, ready-made portfolio of assets, which generated turnover of more than €140 million during the first nine months of 2014.

According to the latest appraisal data published by the CNMV, the market value of Testa’s properties amounts to €3,287 million, which would make it the largest Socimi in the country by asset value. Currently, Merlin Properties is the largest Socimi, with assets valued at more than €1,276 million.

This year, we also expect to see the IPO of Bulwin, the Socimi created by the listed company Quabit. The historical real estate company GMP has also changed its structure to a Socimi.

Original story: Expansión (by C. Morán and R. Ruíz)

Translation: Carmel Drake

Lar España & Pimco Buy Plot On c/Juan Bravo For €120m

2 February 2015 – Expansión

The Socimi Lar España and the fund Pimco have purchased a plot of land on Calle Juan Bravo in Madrid for €120 million. The land has a buildable area of 26,203 square metres and has been earmarked for the construction of new homes.

Original story: Expansión

Translation: Carmel Drake

Lar España RE & Pimco Seal the Deal on the Juan Bravo 3 Luxury Complex

16/10/2014 – El Confidencial

After three years of disagreement between real estate businessmen Rafael Ortiz and Navarre-born Fernando Fernandez Tapias, their highest-definition-of-luxury housing development Juan Bravo 3 was sold at a price of nearly €3 million per apartment.

The complex, located in exclusive Salamanca district in Madrid, was aquired by Socimi (Reit) Lar España and its U. S. partner Pimco for around €130 million from Mr. Ortiz’s property company Eurosazor.

To be sealed, the transaction required a permission from the main lender of the vendors, Santander. The entity inherited ownership of the project from Banif. It is said that the bank agreed on the sale after Mr. Fernandez satisfied his personal debt amounting to €23.5 million.

Rafael Ortiz and Fernando Fernandez Tapias are known for construction of high-end flats in Madrid and for purchase of two office buildings of Repsol and Mutua Madrilena situated in the intersction of the Juan Bravo and Lagasca streets. The original properties were demolished and the plot was designed to carry the abovementioned luxurious housing development. Sadly, for the recession, the construction works had to be halted.

By the deed, Lar España Real Estate meets its targets to invest in prime assets located in Spain’s biggest cities. Just yesterday, the Socimi reported acquisition of a controlling stake in the Portal de la Marina retail park in Ondara, Alicante, for €17.5 million. At its flotation, the REIT firm raised €400 million in funds. Until now, Lar España Real Estate has spent €230 million of this amount and soon it is going to invest another €130 million in a new project in Madrid.

 

Original article: El Confidencial (by Jose Antonio Navas)

Translation: AURA REE

Pimco & Lar to Restart Top-End Project in Madrid

9/10/2014 – Expansion

One of the world’s largest fund managers, Pimco, has just signed a joint venture agreement in order to acquire Inmobiliaria Juan Bravo 3, the company owning the plot located on a street of the same name in Madrid.

Founded in December 2006 by Eurosazor, the firm is controlled by Rafael Ortiz. The target was to build a top-luxury housing development inspired by London’s One Hyde Park skyscraper. To bring the plan to reality, Eurosazor bought two office buildings from Repsol and Mutua Madrileña in 2007 for the total of €165 million.

The recession hit halted the project. In June 2011, Mr. Oritz and partners decided to pick the venture up and construct 60 apartments of more than 150 square meters each and sell them at prices starting from €2.5 million.

The complex was about to be designed by prestigious architect’s office Rafael de La-Hoz and traded by real estate company Gilmar. Finally, the new trial ended up in fiasco and pulled both Eurosazor Activos and Inmobiliaria Juan Bravo 3 down to bankruptcy.

Pimco’s offer amounts to €130 million, by €30 million less than originally asked. For this venture, the U.S. property giant allied with Spanish Lar Group. This is not the first time the business partners cooperate as Pimco holds a 12.49% stake in a Socimi (a REIT company) created by the Lar Group and valued at €46.75 million.

The U.S. fund manages a $1.8 billion worth of assets. What is more, it has got shares in Spanish public debt and preferred participations in BBVA, Bankia and Sabadell.

 

Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE

Deutsche Bank Reduces Its Shareholding In Lar España From 3,5% To 1,7%

13/08/2014 – Expansión

The largest German bank has reduced by half, from 3,5% to 1,7%, its shareholding in the real estate management company (or socimi) Lar España Real Estate.

Specifically, the German firm sold in the last few days 734.524 shares in the listed company which invests in the real estate market, thus reducing its share packet from 1,42 million to 690.495 shares.

Deutsche Bank points out that the activities it carries out in its subsidiary depend partly on its discretional portfolio management activities, meaning it does not directly control the associated voting rights.

On 5 March, Lar España Real Estate was the star of the first listing of a real estate sector firm on the Continuous Stock Exchange since 2011 and the first listing of a socimi in the Spanish market.

The firm is backed by the Lar Group, which is 83% controlled by the Pereda family.

Among the partners with shareholdings in the socimi are the American investment fund Cohen & Steers with a 6,5% shareholding, Pimco (12,5%), Franklin Templeton (10%), Marshall Wace (2%), the Spanish firm Bestinver (4,1%) and Ameriprise Financial (3,74%).

Original article: Expansión 
Translation: Aura REE

Prominent Investors Poach Shopping Centers & Offices in Spain

15/04/2014 – Cinco Dias

Since the dawn of the year, foreign investors have been looking closely at purchase opportunities in Spain, let it be through retail sales or betting on Socimis (Spanish REIT companies). Also, such giants as Baupost, Pimco or Fidelity have put their focus on our country´s real estate, especially on the tertiary sector: offices, trading premises, shopping centers and hotels.

Last year, investment in the sector reached €5 billion that duplicated the 2012 amount, however still much behind the scores of 2007 with €10 billion spent. According to a report drawn by CB Richard Ellis, the investment focus shifted from other countries to Spain.

This year, the most important transactions were defined by Baupost acquiring 8 shopping malls in Spain for €160 million and the Banco Sabadell and London & Regional Properties´s deal on purchase of trading properties in Madrid.

Such operations revive demand and help in obtaining better yields. As BNP Paribas Real Estate informs, during the first quarter of 2014, primary areas in the business part Madrid have seen 4% yields.

High yield and low risk are two factors that convince investors to look inclinably at Spain again. The best example are Socimis, the REIT firms that enjoy growing popularity. For instance, Lar España aspires at 12% profitability for its offices, shopping malls and industrial property. Pimco and UBS are its major shareholders.

In turn, Hispania Activos Inomobiliarios, another freshly listed Socimi, expects to raise 15% yields in the tertiary sector and the most important investors who decided to bet on it are Soros and Paulson, Morgan Stanley or Fidelity.

Out of the €5 billion invested in offices, shopping centers and trading premises in Spain, 70% was contributed by foreigners. Almost half of it, €1.582 million arrived from the United States.

The first signs of looming improvement was the return of foreign investors seeking Spanish public debt. Since August 2012, non-resident investors have bought sovereign debt for over €103 billion. At the end of February, they owned €295.282 million, while in December they reached €298.139 million. (…) Real estate represented €1.787 million, 66.7% more than a year before. CBRE adds that they all jumped by 200 bps more.

Last year, one of the most heard transactions was, for example, the lease-to-buy contract on Torre Foster in Madrid signed with Abu Dhabi sovereign fund. Also, the purchase of the Agbar Tower in Barcelona for around €200 million by Emin Capital has not escaped unheeded.

 

 

Original article: Cinco Días (by David M. Pérez)

Translation: AURA REE

Perella, Pimco & Anchorage Vie For the 200 Castellana Building

26/02/2014 – El Confidencial

Irrational. The real estate market is experiencing the greatest activity rebound in years. The most vivid emotions are brought about by the sale of the building at 200 Castelllana Street, a property situated in the north of Madrid, formerly belonging to Reyal-Urbis. Even 22 investors took part in the bidding in the first stage of non-binding offers. Funds Pimco, Perella and Anchorage made it to the final bidding.

International investors are yearning for entering the Spanish real estate market, especially after the price corrections reaching -50% (…).

During one month only, CB Richard Ellis and Knight Frank received 22 offers for the building that includes four products: offices, trading zone, a parking lot and a five-star hotel. The property is less than one year old and yet has not got 100% occupancy rate. (…).

The auction became the talk of the town for the bidders are debuting on the Spanish market. On the one hand, there is the opportunistic fund Anchorage that bought buildings Eurohypo/Monteverde in Madrid and Barcelona within the Copernicus Project. On the other hand, we find the U.S. funds Perella Weinberg Partners and Pimco. The lattest has just joined shareholders of the recently listed Socimi of Grupo Lar.

The bidding´s organizators managed to establish the price at treshold of €150 million promised to the building´s banking holders (Bankia, Sabadell, Santander, BBVA and Caixa). In truth the price is set a long way behind the €320 million invested in the property in the boom times by developer Rafael Santamaria, chairman of Reyal Urbis, currently put up for auction as well. (…).

 

 

Original article: El Confidencial (Carlos Hernanz)

Translation: AURA REE