Property Managers Look Forward to the End of the Recession

22/08/2014 – El Pais

The majority of large developers that escaped the unforgiving financial crisis are trapped in vagueness which prevents them from confirming the recovery peeping into the real estate market. They no longer owe the terrific €35 billion of 2008, but they still have a €20 billion debt, crippling them from resuming their activities.

After the first five years of the recession, marked by many refinancing agreements, all the measures turned out to be insufficient as the firms still had no capacity of paying the debts. In 2013, the dinamics changed.

Only Catalonian Fergo Aisa has not survived the tough process, liquidated fast and quietly.

The undisputable master in staying afloat is Colonial. In May this year, the company enlarged its capital with a €1.263 million amount and gained such promintent investors as Juan Miguel Villar Mir (the president of OHL) and the Sovereign Wealth Fund of Qatar. Furthermore, the realtor shed the troublesome assets and earned €559 million in the first half of the ongoing year.

The business was faring so well, that Colonial decided to take part in the bidding for a 62% stake of Realia put up for sale by FCC and Bankia. Colonial has taken everyone aback by outbidding sure-bet Fortress and King Street with its €650 million offer submitted exclusively for a real estate affiliate of Realia.

However, before the best bidder acquires the branch, it must meet several requirements, like selling 9 shopping malls of Realia. Then, the real negotiations on buying 20 offices in Madrid, the Fira tower in Barcelona and the Kansas City business center in Seville will commence.

At present, after selling the stake at SIIC de Paris for €1.51 million, the real estate assets of Realia represent a value of €830 million, whereas the developer activity and the land together barely cross €520 million.

Sacyr also successfully overcame the black days of the recession, although finally it sold its arm Vallehermoso, allowing the firm to redeem a €1.2 billion indebtness.

Principally, the company had to deal with too many plots, a very common problem among property managers, such as Reyal Urbis, Martinsa-Fadesa or Metrovacesa.

When the crisis came around, banks realized they had lent nearly €15o billion to developers for purchase of 200 million square meters of land in total. As the borrowers progressively failed to pay-off their debt, six years later, the entites owned over 100 million square meters of land.

Apart from banks, the magnitude landed in balance sheets of Spain‘s ‘bad bank’ (Sareb) or was sold to investment funds with up to 60% discount. The remaining 95 square meters stay in hands of the property managers who hurry to sell them out to pay the debts.

Other companies like Martinsa-Fadesa, Reyal Urbis and Renta Corporación found themselves at the risk of being auctioned. The two first still struggle to crawl out of the insolvency process, whereas the last had managed to do so but was then hit by an unexpected €10 million debt owed to the Tax Office.

 

Original article: El País (by Juan Carlos Martínez)

Translation: AURA REE

Alfredo Coto Buys a Building on Castellana St. For €20 Mn

29/07/2014 – El Confidencial

Alfredo Coto, a butcher´s son who owns the largest supermarket chain in Argentina called Coto Supermercados, decided to invest in the Spanish real estate.

Last week, he bought a building in Madrid, situated at 16 Paseo de la Castellana street and rented by ICEX as its main headquarters. The businessman paid around €20 million for it to Renta Corporación led by Luis Hernández. The firm will now manage the building assigned for triple use (office, commercial and hotel) and prepare it for repositioning.

This way, the Coto family joins other South American investors who arrived at Spain to enjoy bargain property prices in regard to exchange for their currency. So far, Mexicans (IBM´s premises), Chileans (2, Plaza de la Lealtad square) and Venezuelans (the M-40 shopping mall) have courageously bet on Spain.

 

Orginal article: El Confidencial (by Carlos Hernanz)

Translation: AURA REE

Renta Corporación Finally Overcomes the Insolvency

14/07/2014 – Cinco Dias

The Mercantile Court Number 9 in Barcelona has given a postive verdict on putting an end to the bankruptcy status of the Catalonian real estate company.

Renta Corporación has managed to come to agreements with its lenders, establishing a viability and repayment plan. By the deed, the firm directed by Luis Hernández, regained the full powers of management and decision-making, after almost one and a half year of being declared a bankrupt.

On the new path, Renta Corporación explores possibility of welcoming international funds in its holding, without losing the control, though. The company is going to carry on with its two business models: purchase, refurbishment and real estate sales and the advisory services, however since now it will tighten the belt to €10 million.

Also, Renta is considering return to the Spanish stock market in July-September.

 

Original article: Cinco Días (after: EFE)

Translation: AURA REE

Renta Corporación Aims at Catching Eye of the Foreign Investor

18/06/2014 – Expansion

Real estate company Renta Corporación is negotiating with various international funds on giving them the green light to acquire  minority holidings in its capital. David Vila, the firm´s CEO said “the odds of cooperation are high, yet there is nothing sure”.

Renta is awaiting judicial confirmation of getting out from the bankruptcy state as it had finally managed to obtain support from its lenders. Meanwhile, the firm is already planning coming back to normal investment activity, suspended for several years. During that time, Renta Corporación would rather take the role of an advisor or an intermediator accompanied by another investor.

From now on, the company´s strategy will assume both individual and joint investment with €10 million raised for the purchases.

 

Original article: Expansión (by Marisa Anglés)

Translation: AURA REE

Renta Gains Lenders Support to Get Out of Bankruptcy

16/06/2014 – Expansion

Renta Corporación could crawl out of insolvency within the next weeks. Banks approved the arrangement proposal and as a consequence the Mercantile Court of Barcelona will lift the suspension of payments procedure in 3-6 weeks.

After a year and 3 months of being declared bankrupt bearing a €185 million indebtness, Renta obtained a 100% support from the banks participating in the sydicated loan (i.e. Sareb, Banco Popular, ING Real Estate Finance, Deutsche Bank, CaixaBank and Caixa Geral) allowing cancellation of €98 million in exchange for mortgage-backed assets.

The rest of the debt will be paid-off through two ways: around €35 million will be swapped for Renta Corporación´s shares at price of 5.9 €/share with max. 15% dilution. For the remaining €15 million, forgiveness reaches over 10% with an 8-year repayment term. The company was suspended in the stock exchange in March 2013 when shares sold for €0.57.

 

Original article: Expansión (by Marisa Anglés)

Translation: AURA REE

In Lieu Payment of €98 Million

12/06/2014 – Expansion

According to decision of the Mercantile Court number 9 of Barcelona, Renta Corporación will have to hand over mortgage backed assets valued at €98 million to the lenders that participated in the syndicated loan granting to the firm.

 

Original article: Expansión

Translation: AURA REE

Banks Demand Renta´s Mortgage-Backed Assets As Loan Guarantee

19/05/2014 – La Informacion

Lenders of Renta Corporación, a real estate firm declared insolvent over a year ago, have filed for allocation of mortgage-backed assets as guarantees for syndicated loan. According to the CNMV (Spain´s Stock Exchange Market Commission), agent bank asked for positive decision of awarding the guarantees to all lenders of the bankrupt company.

Renta voluntarily issued a bankruptcy application in March last year facing a €185 million debt and difficulties in coming to an agreement with the lenders to refinance it. The Mercantile Court number 9 of Barcelona accepted its insolvency at the end of the aforementioned month.

 

Original article: La Información

Translation: AURA REE

Renta Corporación Approves Convention Proposal With Three Payment Options

31/01/2014 – Expansion

According to the news brought about by the CNMV today, the joint convention has been allowed to enter the procedures by the Court number 9 in Barcelona, on 29th of January.

The convention establishes three alternative ways of payment in respect to the ordinary and subordinate credits.

The first alternative presents a proposal on gradual removal of the credit amount and a payment with growing annual quotes up to 8 years time.

The ´B´option consists of a conversion of Renta Corporación Real Estate SA (RCSA)´s credit into assets, keeping the debt as a participatory debt.

The loans embraced in the third alternative will be converted into participatory debts or maintained in the said nature and will be met when they are integrally met in total of the obligations assumed by the creditors affected by the previous alternatives.

Original article: Expansión 

Translation: AURA REE