Sareb Negotiates the Sale of Part of its Stake in Témpore with TPG

30 April 2019 – La Vanguardia

Sareb is holding formal negotiations with the US fund TPG Real Estate Partners III regarding the sale of part of its stake in the rental home Socimi Témpore Properties, of which it controls 98.38%.

Témpore owns 2,268 rental homes, making it the third largest operator in the Spanish rental home market. It closed last year with a loss of €384,394, but is expected to generate profits from 2020.

Sareb opened a process on 7 March to receive binding offers for Témpore. At least four funds expressed their interest, but it is understood that TPG is the only candidate left in the running.

The operation is expected to close during the month of May.

Original story: La Vanguardia

Translation: Carmel Drake

OHL Negotiates the Sale of Canalejas for €200M to Raise Liquidity

15 April 2019 – Expansión

The construction group OHL is considering selling its 50% stake in the Canalejas complex in order to raise cash. The other half was acquired by the PokerStars founder, Mark Scheinberg, in February 2017.

Canalejas, which is located in the centre of Madrid, just a stone’s throw from Puerta del Sol, and which is going to house Spain’s first Four Seasons hotel, with 200 rooms and a 15,000 m2 high-end shopping arcade, is one of the jewel’s in OHL’s crown. Nevertheless, the construction company chaired by Juan Villar-Mir de Fuentes, needs funding to undertake new projects and return to growth, and so it is considering selling its 50% stake in the complex.

Although no formal competitive process has been opened, sources report that preliminary conversations are being held with interested investors, including one international fund.

Canalejas spans a surface area of 50,000 m2 and its development has involved the investment of €525 million. The complex is due to open in the final quarter of this year.

Original story: Expansión (by R. Arroyo & C. Morán)

Translation/Summary: Carmel Drake

Julius Baer Acquires 3% of Metrovacesa and 8.14% of Neinor

17 April 2019 – Voz Pópuli

The Swiss bank Julius Baer has been increasing its stakes in the main Spanish property developers. The company now owns 3% of Metrovacesa through its Sicav Kairos and 8.14% of Neinor Homes, of which 6.55% is held indirectly.

As such, the Swiss bank is the second largest shareholder of the property developer created by Lone Star, behind the Israeli firm Adar Capital, which controls 28.6%.

The share purchase by Julius Baer comes a week after Neinor’s board approved the replacement of Juan Velayos as its CEO, in an environment of maximum uncertainty in terms of the achievability of the objectives set by the Spanish property developer.

Neinor’s share price has fallen by 17% so far this year, and as such, each share is worth around €10, well below its stock market debut price of €16.98.

Nevertheless, the group’s results for 2018 were strong, with revenues of €382 million, up by 70% YoY and an EBITDA of €56 million, which was almost seven times higher than in the previous year. Moreover, the property developer has already pre-sold 80% of the units it plans to deliver in 2019 and 30% of those due in 2020.

Original story: Voz Pópuli (by David Cabrera)

Translation/Summary: Carmel Drake

Generali Creates New Retail JV with €500M to Invest in Shopping Centres

5 March 2019 – Eje Prime

Axis Retail Partners – that is the name of the new investment vehicle focusing on shopping centres that Generali has just launched. The insurance company holds a 51% stake in the company, which is going to invest €500 million in high-quality shopping centres across Europe.

The vehicle is expected to create its first fund, Generali Shopping Centres, during the second quarter of 2019, once the necessary approvals have been obtained. The fund’s expected annual return is 7%.

Original story: Eje Prime 

Translation: Carmel Drake

Libertas 7 to Enter the Market for Student Halls

1 March 2019 – Levante EMV

Libertas 7 closed 2018 with net equity of €91.9 million, an increase in its turnover from its real estate and tourist activity of 44% and a yield on its portfolio of listed investments of -0.8%, following a year of sharp falls on the markets. The group expanded its tourist activity with the incorporation of the management of the Sea You Hotel Port hotel in Valencia and it carried out its first direct private capital investment with the acquisition of a stake in Via Nature.

The portfolio of investments in listed companies had a market value of €46 million at the end of the year. The group’s future strategy is focused on the development of new plots, own and acquired. It is also committed to increasing the tourism area with halls of residence for students.

Original story: Levante EMV (by E. Press)

Translation: Carmel Drake

Urbas will Receive up to €6M from its Major Shareholders

22 January 2019 – Expansión

Urbas, a company specialising in the promotion and management of land, has signed an agreement with its reference shareholders Robisco Capital Markets and Quamtium to push ahead with the repayment of its debts. By virtue of this agreement, its shareholders are guaranteeing its financial stability and allowing it to obtain liquidity in exchange for shares in the company. In this way, the shareholders are going to inject up to €6 million into the company in exchange for up to 1.75% of the share capital.

These shareholders own almost 28% of the company each, according to the latest registers from the CNMV.

Specifically, Robisco and Quamtium are going to sign a line of credit for a maximum of €2 million to equip the company with the liquidity it needs to make its current payments, at least, until the end of 2019. Moreover, the shareholders have committed to acquire debt from Urbas’s suppliers and creditors up to a maximum of €4 million.

In exchange, Robisco and Quamtium are reserving the right to acquire part of the share capital through the share subscription, said the company to the CNMV. The increases will be undertaken at a maximum nominal value of €6 million, equivalent to 1.75% of the share capital. “The agreement allows us to consolidate the structure of the balance sheet and improve the financial ratios, at the same time as strengthening the activity, developing the businesses and ratifying the trust and commitment of the main shareholders”, said Juan Antonio Acedo Fernández, who was recently appointed as the President of the Group.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

BBVA Sells its Stake in Avantespacia to Manuel Jove’s RE Company

8 January 2019 – El Economista

BBVA is continuing to divest property. This time with the sale of its stake in Avantespacia Inmobiliaria, the company that it constituted in 2016 to undertake real estate projects in Spain.

The entity has sold its remaining 30% stake in the firm to Inveravante, the holding company owned by the businessman Manuel Jove, the founding partner of the real estate company, who now owns the entire firm.

With this operation, Avantespacia “is strengthening its commitment to the residential real estate sector in Spain, with housing developments in the prime areas of the main provincial capitals of our country”, said the company in a note.

This operation forms part of a company restructuring process of the real estate division of Inveravante with the aim of “charting a global strategy, in accordance with the challenges that the sector poses for the future in both the domestic and international spheres”.

Jove’s company, founded in 2007 in A Coruña, divides its activity into different business areas, since in addition to real estate, it also works in the hotel segment, in selected agri-food products, and in the energy sector. Currently, the company has an international presence and operates in Morocco, Mexico, Brazil, Panama, the Dominican Republic, Canada, Germany and Romania.

BBVA has been one of the most active entities in the sale of loan portfolios, signing its most recent operation on 26 December with the sale of Project Ánfora to an entity managed by the Canadian pension fund CPPIB. Specifically, it sold a portfolio of loans comprising mainly doubtful and non-performing mortgage loans, with a live balance of approximately €1.49 billion (…).

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Héctor Colonques Acquires 4.9% of Árima for €5M

29 October 2018 – Europa Press

Héctor Colonques Moreno (pictured below, centre), the controlling shareholder of Porcelanosa, has acquired a 4.99% stake in Árima, the company constituted by the former CEO of Axiare, José Luis López de Herrera-Oria, which made its stock market debut last week with a public share offering (OPS).

Colonques has acquired half a million shares in the firm, a package worth €5 million based on the share price of €10 that was set for the IPO.

Nevertheless, that stake is currently worth €4.65 million, given that the firm’s shares are trading at around €9.30.

The investment by the co-owner of Porcelanosa follows others made by institutional investors, which are emerging in the days following the firm’s placement in the register of Spain’s National Securities and Exchange Commission (CNMV).

In this way, Bank of Montreal has acquired 9.79% of the share capital of the new Socimi, whilst Morgan Stanley has purchased 9.4% and the fund Pelham Capital another 9.9%.

Árima made its stock market debut last Tuesday, 23 October, after reducing its OPS by one third. It was set at €100 million in the end and its placement period was extended by several days (…).

Original story: Europa Press 

Translation: Carmel Drake

British Fund Pelham Acquires 10% of Árima

25 October 2018 – Eje Prime

Árima has opened the door to British capital. The UK fund Pelham Capital has declared a stake of 9.98% in the new Socimi from Luis López de Herrera-Oria (pictured below), according to a statement filed by the company with Spain’s National Securities and Market Commission (CNMV).

The new real estate vehicle of the former founder and CEO of Axiare (which was taken over by Colonial) has convinced the London-based firm to enter its share capital by acquiring 999,028 shares, worth €9.5 million, on the basis of the real estate firm’s current share price.

After completing its debut on the main stock market, with a dip of 10%, Árima’s share price recorded a slight upturn on the second day of trading, with an increase of 5.56%.

It is expected that, over the coming days, other funds and institutional investors will be revealed that have participated in the €100 million capital increase that Árima launched to complete its stock market debut. Initially, the Socimi had intended to raise up to €300 million, but it lowered its expectations in light of the unstable situation in the markets.

Original story: Eje Prime

Translation: Carmel Drake

BBVA & Cerberus Name Their Real Estate Macro-Alliance ‘Divarian’

14 June 2018 – La Información

Cerberus and BBVA have put a name to their macro-alliance. The partners have chosen ‘Divarian’ as the name of the corporate entity into which they will deposit and through which they will manage the sale of the €13 billion gross in property proceeding from the bank. The logo mimics the images of the two partners given that it is blue in all its tones and shades.

The brand was registered by Promontoria Marina, the subsidiary of the US fund that will be used to close the transaction, in April in the Official Gazette of Industrial Property (Bopi), and BBVA has just extended it to two of its subsidiaries, renaming the asset holding company BBVA Propiedad as Divarian Propiedad, and the property developer Anida as Divarian Desarrollos Inmobiliarios. In the case of the latter, the change of name comes into force immediately given that instructions have already been given internally for it to be used in all operations signed from now on.

The recent name dance is fueling expectations that these two subsidiaries of BBVA will end up under the umbrella of a macro-holding company or, even, carrying out promotion activity, although that activity was covered by the US fund with the acquisition of the Burgos-based Inmoglacier. Owner of the property developer and servicer – Haya Real Estate – Cerberus will complete the real estate puzzle when it formalises the transaction with the bank because it will also become the owner of the assets.

BBVA, which had always moved against the tide of the financial sector when it came to the sale of businesses and subsidiaries, surprised everyone last year by putting the bulk of its property on the market. Cerberus was the successful buyer of the portfolio, and so it signed a deal to transfer €13 billion of the total €17.8 billion in gross exposure to a company in which the fund will control 80% and the bank will retain the remaining 20%. BBVA is following in the footsteps of Santander, which removed €30 billion gross (€10 billion net) from its balance sheet inherited from Popular, and transferred it to a subsidiary in which Blackstone purchased a 51% stake and Santander retained the remaining 49% (…).

Cerberus has focused on documenting and selecting assets with the intention of generating some plots of land for Inmoglacier, dedicating some assets to rent and, even, packaging up certain other properties likely to offer maximum returns into Socimis, and divesting the rest through portfolios or as independent units. The teams are working against the clock, with the support of staff from Anida who are working from Cerberus’s offices in Madrid, according to sources close to the process (…).

Original story: La Información (by Eva Contreras)

Translation: Carmel Drake