Meridia Converts New RE Fund Into A Socimi

19 May 2016 – Expansión

The private equity manager Meridia has decided to convert its latest real estate fund, Meridia Real Estate III, into a Socimi, which will be listed on the Alternative Investment Market (MAB) within a maximum period of two years, according to sources at the company led by Javier Faus (pictured above).

The fund, which was constituted last year, has available resources of around €250 million, but its investment capacity increases to €600 million including its bank debt.

The same sources explained that the conversion into a Socimi comes in response to the fact that, unlike its predecessors, large institutional players have invested in this fund – together with a family office. Such players tend to employ the REIT structure for their operations in the real estate sector. REITs are very similar companies to the Spanish Socimis, with significant tax incentives and the obligation to list on the stock exchange.

Meridia Real Estate III debuted in April with the acquisition of a batch of eight office buildings and a logistics warehouse located in Madrid and Barcelona. The package, which belonged to the real estate fund Segurfondo Inversión, managed by Inverseguros, was sold for €52.45 million. It is a diversified portfolio with great potential.

Original story: Expansión (by J.Orihuel and M.Anglés)

Translation: Carmel Drake

Meridia III Makes Its First Acquisition In Madrid & Barcelona

3 May 2016 – Press Release

Meridia Capital’s new real estate vehicle, Meridia III, makes its first acquisition in Madrid and Barcelona.

On Friday, Meridia Capital Partners, SGEIC, S.A., (“Meridia Capital”) announced the first deal of its recently launched real estate vehicle, Meridia III. The fund has acquired a portfolio of 9 assets in the metropolitan areas of Madrid and Barcelona. The portfolio totalling c.42,000 sqm mainly includes office buildings, as well as a logistics warehouse and 581 parking spaces. The properties are located in established and integrated business areas of Spain’s two main markets. Meridia III acquired this portfolio from the Spanish real estate fund Segurfondo Inversión (managed by Inverseguros).

Six assets, which account for 87% of the portfolio in terms of square metres, are located in Madrid, whereas the remaining 13% (totalling 3 buildings), are situated in Barcelona. The properties have attracted prominent tenants such as BBVA and Telefonica.

Juan Barba, Partner, Managing Director Real Estate at Meridia Capital, said “This is an excellent opportunity to acquire a diversified portfolio with high value creation potential. The country has been showing clear signs of recovery in the office segment, triggered by an increase in occupancy levels as well as gradual rental growth. This transaction brings new office assets to those acquired through Meridia II, thus reinforcing our local presence in this sector.”

Meridia Capital’s Founding Partner & CEO, Javier Faus, stated “The launch of Meridia III and this first deal demonstrate that we continue to be very positive about the prospects that the Spanish real estate sector offers. Through the new vehicle we aim to leverage on our track record and extensive experience in this market, which we believe will allow us to continue achieving attractive returns for our investors.”

Meridia Capital was advised on this deal by Aguirre Newman, Garrigues and Dokei.

Original story: Press Release

Edited by: Carmel Drake