Realia Refinances €802.75M Debt Balance

14 December 2015 – Cinco Días

Realia, the real estate company controlled by Carlos Slim, has signed an agreement to refinance its debt, which currently amounts to €802.75 million, according to a statement made by the company on Friday to Spain’s National Securities Market Commission (CNMV).

The company has signed the agreement with the entities Puffin Real Estate, CF Aneto and Goldman Sachs International with the aim of enabling it to comply with its short and medium-term financial feasibility plan and to “significantly” reduce its financial indebtedness.

In this way, according to the agreement, the repayment of the loan has been brought forward to 30 May 2016; a new calendar has been established, which divides the repayment of the existing debt into four phases; and a discount has been established on the existing debt balance, which will be applied to the payment milestones to be made by Realia.

Similarly, the real estate company has increased the amount of the capital increase it initially launched for €87 million, which the real estate company’s majority shareholder, Carlos Slim, has committed to participate in, with the injection of around €21 million, on the basis of the 25.1% stake that he currently holds in the company.

Specifically, Realia’s Board of Directors has agreed to increase the amount of this capital increase from a nominal value of €36 million to €36.81 million, whereby increasing the total number of new shares to be issued by 3.38 million.

In this way, it will issue and put into circulation a total of 153.38 million ordinary shares, with a nominal value of €0.24 each and a share premium of €0.34.

Original story: Cinco Días

Translation: Carmel Drake

Quabit Reaches Agreement With Sareb To Restructure Its Debt

30 June 2015 – El Mundo

After several months of negotiations, Quabit Inmobiliaria and Sareb have reached an agreement to restructure the debt that the RE company owes the ‘bad bank’ – it represents 72% of the Quabit’s total financial debt and was due to mature in 2016.

The agreement has been ratified by the Boards of Directors of both companies, and is pending legal implementation, which is expected to take place in July.

Under the terms of this new agreement, Quabit commits to make an advanced payment of €35.6 million before the end of the year, which will allow it to free up assets with short term development potential, where there are plans to build around 1,000 homes. In parallel, a new calendar of maturities has been established, which extends until 2022.

Similarly, regarding the debt associated with the stock of finished products (53 homes), both entities have agreed to set new minimum sales prices, which will allow them to speed up the sale of the residential “stock” and repay the corresponding debt.

The signing of this agreement will provide Quabit Inmobiliaria with the possibility of realising the capital increase that it plans to propose at its General Shareholders’ Meeting today (30 June 2015), amounting to approximately €70 million.

With respect to the rest of the group’s debt, the payment of the majority (representing 24% of the total) is limited to the specific assets that guarantee it. For the remaining 4%, the entity will have to agree similar conditions to those just reached with Sareb.

“The signing of this agreement will allow us to handle the long-term future in an optimistic way. Also, it places us in a strong position to become a leading, active agent in the sector once more. In recent years, we have been working on stabilising our financial structure and now we have the opportunity to develop new investments and projects”, said Félix Abánades, Chairman of Quabit Inmobiliaria.

On the other hand, he added that “both entities are satisfied with the joint work performed and the agreement reached. Quabit has laid the foundations to secure its future, to actively manage and develop its own assets and to meet its debt payments.

Original story: El Mundo

Translation: Carmel Drake