UK’s Reuben Brothers Buy the Hotel Pacha Ibiza

4 January 2020 The Reuben brothers, the fourth wealthiest family in the UK, have acquired the Hotel Pacha in Ibiza through a joint venture with the Pacha Group. The Reubens will finance Pacha’s expansion in Ibiza and around the world.

The new joint venture will renovate the existing 57-suite hotel and possibly build an extension in the adjoining parking lot.

The deal marks the Reubens third acquisition on Ibiza. The brothers also paid 40 million euros to buy up 166 hectares of protected land on the island.

Los hermanos Reuben, la cuarta familia más rica del Reino Unido, han adquirido el Hotel Pacha en Ibiza a través de un joint-venutre con el Grupo Pacha. Los Reubens financiarán la expansión de Pacha en Ibiza y en todo el mundo.

La nueva empresa conjunta renovará el hotel existente y posiblemente construirá una extensión en el estacionamiento contiguo.

El acuerdo marca la tercera adquisición de los Reubens en Ibiza. Los hermanos también pagaron 40 millones de euros para comprar 166 hectáreas de tierra protegida en la isla.

Original Story: Preferente.com

Translation/Summary: Richard D. Turner

Santander Matches the Reuben Brothers’ Bid to Acquire the Ciudad Financiera

13 February 2019 – Voz Pópuli

Santander has matched the bid presented by the Reuben brothers for the Ciudad Financiera, in a new attempt to neutralise the offensive by the British investors to acquire its headquarters in Boadilla del Monte (Madrid).

On Tuesday, the bank chaired by Ana Botín presented a preferential acquisition right against the bankruptcy of Marme – the previous owner of the Ciudad Financiera –in the commercial court of Madrid, having set aside €20 million to be able to carry out the acquisition, according to sources familiar with the process. The operation is valued at around €3 billion.

Spain’s largest bank considers that it has the option of resorting to a preferential acquisition right, established in the lease contract for the Ciudad Financiera, signed on 30 December 2008 between Marme and Santander Global Facilities.

Bankruptcy process

Nevertheless, during the bankruptcy process that has resulted in the sale of the Ciudad Financiera, the administration appointed by the judge warned that the aforementioned right could not be exercised in order to “not obstruct the liquidation of the assets any further”.

Judge María Teresa Vázquez Pizarro, from Commercial Court number 9 in Madrid, said that the purpose pursued with the transfer of the Ciudad Financiera determines “that the lessee’s right of preferential acquisition cannot be accepted, given that the interest in the continuity of the business activity prevails over any rights recognised to third parties”.

The deadline for Santander to exercise its preferential acquisition right expires in the middle of this month (…).

Last November, the bankruptcy administration announced that the Reuben brothers had submitted the highest bid for the Ciudad Financiera, exceeding even the offer presented by Santander, a decision ratified this year by the court.

Santander warned that the offer from the British investors – one of the top 100 wealthiest families in the world – should not be accepted, highlighting the corporate network that they had set up for the operation, which includes several companies registered in tax havens.

Moreover, the Spanish bank has agreed the purchase with the main creditor banks of Marme – Caixabank, ING, Natwest Markets (previously The Royal Bank of Scotland), Bayerische Landesbank, and HSH Nordbank- of their debt. Through that, it has managed to obtain the support of those entities for its intentions and they have sent letters to the mercantile court defending the purchase of the Ciudad Financiera by Santander.

The breach of the preferential acquisition right by Marme carries a fine of €500 million, and the retraction of the sale to a third party, according to the terms of the contract signed by Marme and Santander, say the sources consulted.

The same sources indicate that this fine could be supplemented by another penalty amounting to €750 million if the suitability test is not fulfilled; in total, a fine amounting to €1.25 billion that Santander hopes will serve to ensure that the Reuben brothers reconsider their strategy

Original story: Voz Pópuli (by Alberto Ortín)

Translation: Carmel Drake

The Reuben Brothers Complete the Purchase of Santander’s HQ for €283M

14 January 2019 – El Periódico

Commercial Court number 9 in Madrid has decided that the best offer for the acquisition of Santander’s Ciudad Financiera, is the one presented by the brothers Simon and David Reuben through their investment arm in Spain, Sorlinda Investment, which bid a fixed amount of €283.73 million.

The administration responsible for the liquidation procedure of the company Marme Inversiones 2007, which is the owner of the Cantabrian bank’s headquarters, asked the Commercial Court to declare the offer presented by Sorlinda Investment as the winner after concluding that its bid was the best. In 2014, Marme Inversiones filed for creditors’ bankruptcy in light of its inability to repay the €1.575 billion loan that it had used to purchase the property from Banco Santander itself.

A few months ago, Banco Santander filed a series of allegations when it was announced that Sorlinda had won the bid. It questioned the entity in terms of the forecasts made in the liquidation plan, and because it considered that the offer submitted by the Reuben brothers did not fulfil the established requirements. The allegations were made by the banking group as creditor and offeror.

Nevertheless, the Commercial Court of Madrid explained that the execution of the liquidation plan, which regulates the procedures to be followed for the realisation of the assets, corresponds to the insolvency administration.

“The report presented explains the procedure followed for the selection of the bids submitted and the actions carried out by the insolvency administration, specifying that there are no justifications whatsoever to question it”, said the ruling, which states that the purpose of the plan is to obtain the greatest value from the asset for the benefit of all of the creditors.

In this way, despite the allegations presented by Ana Botín’s bank, the insolvency administration considers that, from an economic point of view, the offer presented by Sorlinda is the best for covering the loans of all of the creditors in the group.

The Reuben brothers, owners of other large assets

Reuben Brothers is a private investment group specialising in real estate development and debt financing. The company, created by two British brothers of Indian origin, is considered as one of the most exclusive in the world with several privileged properties in its portfolio, such as The Curtain and Members Club in Shoreditch, one of the most well-known luxury hotels in London, and Lingfield Park Marriott Hotel & Country Club.

It is also the owner of the London Oxford airport in Kidlington, the Wellington Pub Company chain of clubs and the Italian marina Portosole Sanremo, amongst others.

Ana Botín’s entity agreed the sale of its head offices in Boadilla del Monte to Marme Inversiones 2007 on 12 September 2008 for €1.904 billion.

Nevertheless, Marme Inversiones 2007 filed for creditors’ bankruptcy in 2014, before the Court then initiated the coordinated liquidation plan in October 2015 (…).

Original story: El Periódico

Translation: Carmel Drake

The Reuben Brothers Buy 5 Plots of Land in Mallorca

4 January 2019 – Eje Prime

The Reuben brothers are continuing to invest in Spain. The British billionaire businessmen Simon and David Reuben have purchased five plots of land in Manacor (Mallorca). The price of the operation is not known nor is the identity of the former owner.

The plots are located close to the house and tennis academy of Rafael Nadal and include 1.5 kilometres of beach, a natural lake and several caves, according to Voz Pópuli. The Reuben brothers will be able to build on their new plots, although parts of them are protected.

With this new operation, the Reuben Brothers are increasing their commitment to the Spanish real estate sector. Just a month ago, the group submitted the highest bid to acquire Santander’s Ciudad Financiera in Madrid.

The investment manager also has assets in sectors such as luxury real estate, including the Portosole Sanremo marina in Italy and the British racetrack company Arena Racing Company. The Reuben brothers’ fortune amounts to more than USD 14.2 billion (€12.4 billion), according to Forbes, which places them in 75th position in the ranking of the richest people in the world.

Original story: Eje Prime 

Translation: Carmel Drake

The Reuben Brothers Win the Bid for Santander’s Ciudad Financiera

12 November 2018 – El Confidencial

Banco Santander’s Ciudad Financiera has a new owner. The Reuben brothers have won the bid to acquire the headquarters of the Spanish bank, whose former owner, Marme Inversiones, filed for creditors’ bankruptcy. The Asian investors, who are residents in London and lovers of Ibiza, submitted the highest bid for the land in Boadilla del Monte (Madrid), fighting off competition from the bank itself chaired by Ana Botín and from the Arab fund AGC Equity Partners.

That is the result of the bid after the envelopes containing the final offers from the three candidates were opened by the bankruptcy administrator. Although the final price is not known, the offers amounted to around €3 billion, according to sources close to the operation, one of the largest operations ever in the real estate market in Spain involving a single asset.

From now on, to validate the purchase by the Reuben brothers, the judge from the mercantile court who is conducting the sale will have to certify that the offer from the London-based millionaires is correct, fulfils all of the requirements and complies with all of the analysis regarding transparency and money laundering. Nevertheless, and even if the judge gives his blessing, Banco Santander may exercise its right of first refusal, which gives it the last word for recovering the headquarters, which it sold in 2008 to a group of investors, who were also British, and with whom it agreed to remain as the tenant for forty years.

For that, the €500 million that Santander has paid Marme by way of rental over the last ten years has to be deducted from the final price, as does the €300 million of intra-group debt that is no longer taken into consideration following the entry into bankruptcy of the company.

Movements in the courts

Because what the Reuben brothers are now buying is the asset of a company that, after borrowing funds to pay even the tax on the original acquisition in 2008, can no longer keep up repayments on the loan it requested to acquire Ciudad Financiera and so filed for bankruptcy. After a long bankruptcy administration process, numerous claims by the creditors in the courts and offers from several international sovereign funds, the Spanish entity wanted to acquire the land of its headquarters in Boadilla del Monte (Madrid), where almost 7,000 people work.

The creditors of Marme Inversiones 2007 include ING, HSH Nordbank, CaixaBank and Bayeriche Landesbank, which granted a loan amounting to €1.575 billion to Propinvest ten years ago in the form of a leaseback arrangement with Santander’s largest real estate asset. Other entities also participated in that loan, including Deutsche Postbank, Royal Bank of Scotland and Raffeisen Zentralbank, which started to sell their stakes in the loan to vulture funds in 2011, with significant discounts on the nominal values, when the owner started to acknowledge that it was unable to make the debt repayments.

One of those who purchased that debt was Blackstone, together with other similar funds, such as Centerbridge and Avenue Capital. The first two submitted an offer to acquire Ciudad Financiera on 17 September, but their proposal was lower than those offers by Santander (…).

The Reuben brothers, which have purchased almost 168 hectares of land in Ibiza over the last two years, have submitted their bid for the Ciudad Financiera through Ibiza Properties LTD. That company was constituted on 1 August, with a nominal value of just GBP 100, money that it will now have to increase to cover the payment to the bankruptcy administrator.

Original story: El Confidencial (by Agustín Marcos)

Translation: Carmel Drake

The Reuben Brothers Edge Ahead in the Bid for Santander’s Ciudad Financiera

22 October 2018 – Eje Prime

The Reuben brothers are in pole position in the race for Santander’s Ciudad Financiera. Their company, Reuben Brothers, has submitted the best offer for the headquarters that the Botín family’s bank owns in Boadilla del Monte (Madrid).

The other two companies bidding in the operation, which is reportedly worth around €3 billion, are AGC and Banco Santander itself. Those three players are the only ones that submitted bids for the Ciudad Financiera on Friday, the deadline for the submission of final offers.

The sale of Santander’s headquarters is part of the insolvency proceedings in which the former owner of the asset, Marme Inversiones, is immersed. The brothers Simon and David Reuben, with the support of JP Morgan, have sent the highest bid to the court, followed by AGC and Santander, according to Vozpópuli.

The envelopes are going to be opened between Wednesday and Thursday of this week, nevertheless, the sale could still be postponed for a little longer by the courts. Not in vain, the Santander Group claims that it has the right of first refusal in the operation, which means that it could improve on the offer that emerges victorious from the bid this week. Neither the Reuben Brothers nor AGC consider that the bank holds this option; they argue that this matter was already resolved during the bankruptcy proceedings.

Original story: Eje Prime

Translation: Carmel Drake