16 July 2018 – Expansión
The General Shareholders’ Meeting of Testa Residencial has approved its debut on the Alternative Investment Market (MAB), which will likely happen before the end of this month (July) through the listing system, according to reports from sources at the company speaking to Europa Press.
The rental home Socimi in which Santander and BBVA hold stakes, had initially planned to make its debut on the main stock market in June, but delayed that move until the end of September due to the political and stock market uncertainty. It has now decided to make its debut on the MAB at the end of this month to comply with Socimi regulations. In this way, in order to not lose its status as a Socimi, which establishes a period of two years from constitution to debut on the stock market, Testa Residencial will list on the MAB before the end of this month, although it does not rule out making the leap onto the main stock market in a second phase.
Through the listing system, the company can request access to trading without the need to launch a public sale offer (OPV). This formula gives its shareholders the opportunity of having their shares trade on an organised market without having to place the shares with new investors. Also, there will be no reference price, but rather the price will be determined based on the purchase and sales orders received during the adjustment period.
Testa Residencial became the second company after Azora to decide to delay its planned debut on the stock market, although in the case of the real estate asset management company, the delay was motivated by the takeover bid that Blackstone formulated for Hispania, one of its main clients.
In the case of Testa, the firm had initially planned to start trading on the stock market during the second half of June, and one of its possible IPO dates was 22 June. At the end of May, and due to the political and stock market uncertainties, the firm decided to delay that debut until the end of September (…)
Other firms in the sector that had also planned to make stock market debuts before the summer, such as Vía Célere and Haya Real Estate, the servicer owned by the US fund Cerberus, may now wait until a window of opportunity opens in October, depending on the conditions of the market. In the case of Haya, the firm’s debut is currently conditional upon the signing of asset management contracts that it is negotiating with BBVA and Sareb.
In terms of Testa Residencial, by virtue of the OPV, the Socimi Merlin Properties had also planned to exit its share capital, with the placement of the entire 17% stake that it held in the firm.
The market also expected Santander and BBVA to sell some of their stakes in the rental home company, which amount to 37% and 26%, respectively. Acciona, for its part, had still not taken a decision about its 20% stake in the company.
Testa Residencial is one of the largest rental home companies in the country, given that its portfolio contains 10,700 homes and is worth €2.275 billion.
With its debut on the MAB and its likely subsequent debut on the main stock market, the firm seeks to consolidate its position as a new, unprecedented real estate giant in the country, given its specialisation in primary residences for rent, at a time when that sector is experiencing a real boom.
Original story: Expansión
Translation: Carmel Drake