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

Testa To Approve Receipt Of Homes Worth €665M From Its Shareholder Banks

30 January 2017 – Expansión

The Socimi Testa Residencial, which is owned by Merlin and the shareholder banks of the former Metrovacesa, is holding an Extraordinary Shareholders’ Meeting today to approve the contribution of new homes to its portfolio by Santander, BBVA and Banco Popular. The homes have a combined value of €665.5 million.

Specifically, the operation will be structured as a capital increase through non-monetary contributions, with a nominal value of €52.6 million and an overall value (nominal value plus issue premium) of €665.5 million.

The operation, which was announced on 15 September 2016 by the President of the Socimi Merlin Properties, Ismael Clemente, means that Testa Residencial – which owns the Group’s rental homes following the merger with Metrovacesa – may double in size thanks to the contribution of homes that the shareholder banks are expected to make.

At the time, Clemente revealed that Santander could end up contributing 4,000 homes and BBVA may provide 1,500 homes to Testa Residencial, which was initially created with 4,700 homes, a pro-forma gross asset value of €980 million and a net asset value of €617 million.

By contributing more homes, the banks may increase their stakes in the company, to the detriment of Merlin. Merlin currently owns 68.76% of the share capital, whilst the remaining 31.24% is held by the former shareholders of Metrovacesa.

Moreover, Testa Residencial’s Extraordinary Shareholders’ Meeting will approve an increase in the company’s share capital through monetary contributions for an overall value (nominal value plus issue premium) of €322.4 million with preferential subscription rights. (…).

Regarding the debut of the Socimi Testa Residencial on the stock market this year, the Corporate Director General of Merlin Properties, Miguel Ollero, said that it will not happen this year and that there is no rush, although the entity does have an obligation to debut on the market within two years.

Original story: Expansión

Translation: Carmel Drake