Tag: Realia

Orion & AEW Favourites at the Realia Bidding

11/03/2014 – Expansion

After two months of vivid negotiations, FCC and Bankia bring the sale of the  62% stake at Realia Business to an end. At the beginning of the year, the two companies, advised by Goldman Sachs, received seven non-binding offers for the real estate firm, from such funds as Anchorage, Orion, Blackstone, Oaktree, Axa, AEW and Amancio Ortega´s Pontegadea.  Realia´s portfolio is worth €3.384 million.

The aforementioned negotiations brought up two leading funds: Orion Capital and AEW (linked to a sovereign fund from Abu Dhabi) that entered the due diligence stage. Perhaps, Pontegadea will join them (…). The sale is supposed to be closed in May or June.

Last year, the real estate company chaired by Ignacio Bayón carried out refinancing of a €792 million syndicated debt proceeding from land and dwellings. Also, Realia lost €51 million due to having realized provisions for €64 million but not having activated fiscal credits for €18 million. The group earned €203 million and €103 million of ebidta.

The future owner will have to begin with talks with Fortress and King Street, as these funds bought a €430 million lot from Sareb and a €100 million one from Santander respectively. Yesterday, Realia closed the day at €1.24 per share and capitalisation of €343.95 million.

 

Original article: Expansión (Rocío Ruiz)

Translation: AURA REE

FCC Converts 57 Millions of Realia Real Estate Debt into Assets

The real estate Realia has accepted share capital enlargement in order to convert FCC´s debt into assets. It will extend the shareholding of the construction and services group up to 36,8% of the capital, according to CMNV´s announcement released on Wednesday. The transaction has been valued at 57.5 million Euros at price of the new assets´ issue.

The swap price, 1,92 Euros, at least doubles the value of its securities at the end of period on the stock market with 0,87% and a slump of 1,70%. 29.994.610 new shares were issued at the nominal value of 0,24 cents per each and with a premium share of 1,68 Euros. The note informs that “FCC´s direct and indirect shareholding from 30.02% becomes 36.85 % now”, in spite of the company´s plan to ditch Realia, due to the difficult situation since the real estate bubble burst.

The Agreement has only recently been approved by the supervisory board, even thought it was announced in May. (…) After the gain, the company´s social capital upsurged to 73 millions, split in 307.370.932 assets.

FCC´s shareholder loan is set within the debt refinancing agreement which Realia has just reached with its banking institutions.

The 57.5 millions of FCC constitute 50% of the loan of 115 million Euros which the construction company granted to Realia in 2009 together with no longer existant Caja Madrid. Shareholding in the bank, thought, made the firm a member of Sareb, which gives it right to control 8.87% of the real estate company. Moreover, the bad bank took Realia´s debt equal to 400 millions over via Fortress.

Source: El País

Sareb and Santander sell 540 million Euros in debt from Realia.

Sareb has finalized the most ambitious operation since its creation by the Government: the sale of Realia´s debt. Sources close to the operation, known as “Project Elora”, declare that they  will  transfer  immediately  nearly  440  million  Euros  to  Fortress,  a  fund  that  will collaborate with the managing company Azora Gestión.

Sareb  had  planned  to  sell  a  higher  amount, but  in  the  end  has  decided to  leave  a participated loan out of this operation, which “will be sold at a later stage”, financial sources add. This is a credit for 114 million Euros, half of which is in the hands of Sareb.

The Project Elora is framed within another huge project, known as Bermudas, that includes all the exposure of the company to the listed real estate companies, Metrovacesa and Colonial. The total amount of this portfolio reaches 1200 million Euros, but several sales have already been carried out.

Along with this operation with Realia´s debt, Sareb awarded in August the fund Burlington Loan Management the package of syndicated loans from Grupo Colonial, with a nominal value of  245 million Euros. A bit earlier, in  May, it  had already placed a  credit from Metrovacesa for 35 million Euros. All this in addition to the sale last week of another 323 million Euros to Deutsche Bank. 90 million of these belonged to Bermudas as they were credits from Metrovacesa.

The two funds which will end up with Sareb´s package have been very active all year, especially Fortress. It acquired Lico Leasing, it was interested in the real estate company of Popular and it offered Sareb to enter its capital when it was created. On the other side, Azora  was  created  by  two  former  executives  from  Santander,  Concha  Osácar  and Fernando Gumuzio and its focused in investing in  the real estate sector on behalf of Spanish companies and banks, as well as Spanish and South American great fortunes.

But not only Sareb is taking advantage of the appetite of foreign investors for real estate assets in Spain, Santander has also joined in with the sale of the debt it had in Realia to the U.S. fund King Street Capital Management. Financial sources explain that the nominal value of that debt in the hands of Santander reached 100 million Euros. The bank declined any comments.

Both the debt of Sareb and the one from Santander were included in the loan refinanced by Realia  for  847  million  Euros,  which  was  participated  by  BBVA,  Sabadell,  Barclays, Kutxabank and CaixaBank. In total, the financial debt of the company reached 2166 million Euros at the end of the first half of the year.

With the agreement for the refinancing, the real estate company presided over by  Ignacio Bayón reduced this credit to 792 million Euros, increasing the recovery period to 3 years, until the 30th June 2016. KutxaBank and Barclays decided to leave the syndicate.

The sale carried out by Sareb and Santander includes 68% of the loan that was signed before the summer. (…)

 

Source: Expansión

So stands the sector.

COLONIAL

The real estate company had losses of 24 million Euros due to the impact of Asentia, the non strategic assets subsidiary, that the company wishes to get rid of.

MARTINSA FADESA

The developing company handed in during the first quarter of the year 15% more units that during the same period in 2012 and sold 77 units off plan, but all of them in the international area.

METROVACESA

The real estate company, controlled since yesterday in 99,8% by the banks Santander, Bankia, BBVA, Popular and Sabadell after its exit from the stock market, obtained gains in its residential area of 1,5 million Euros, with a negative margin of 1,9 million Euros for the sale of 11 properties.

QUABIT

The real estate company, whose parent company (Rayet) is in creditor´s meeting, assures that the first months of the year have shown a “descent in the volume of activity within the real estate sector”.

REALIA

The company, controlled by Bankia and FCC, and where Sareb could enter through a debt capitalization, assures that the gains in the residential activity “are still affected by the credit restrictions”.

REYAL URBIS

The real estate company presided over by Rafael Santamaría, that requested a creditor´s meeting in February, is one of the most affected ones, as its main business is the development. In its results for the first quarter, it confesses a “stagnation” of the commercial sales due to “the lethargy within the real estate sector”.