Tag: Témpore Properties

Sareb’s Sale of Témpore Enters Final Phase with TPG as the Favourite

28 March 2019 – Cinco Días

Sareb’s sale of its rental home Socimi Témpore Properties is entering the home stretch. The bad bank has selected three candidates to pass through to the final round, all of which are US funds, namely, TPG (Texas Pacific Group), Ares and Round Hill, with the former currently the favourite.

Témpore, which is listed on the MAB, has a market capitalisation of €305 million and, according to the most recent assessment performed by Savills Aguirre Newman, an asset portfolio worth €338 million.

In just over a month, Sareb will announce the name of the winning investor, which will take ownership of the Socimi and its 2,249 residential properties.

Original story: Cinco Días (by A. Simón & P.M. Simón)

Translation/Summary: Carmel Drake

Sareb Sells its Socimi & its 3,300-Asset Portfolio to TPG

4 December 2018 – El Independiente

Sareb, the Company for the Management of Assets proceeding from the Restructuring of the Banking System, is closing the final details of the sale of its Socimi Tempore Properties to the private equity fund TPG.

The company, which is in the middle of a non-monetary capital increase amounting to €150 million and which will soon manage 3,300 real estate assets worth €325 million, received several offers at the end of November, including from the fund Apollo. In the end, the proposal from TPG has proved victorious, according to sources speaking to El Independiente.

The US group TPG, which has USD 94 billion in assets under management, is the shareholder of companies such as Spotify, Airbnb, Burger King, Lenovo, Ducati, Saxo Bank and Grohe, amongst others.

The so-called bad bank, in which the State holds a 45% stake, hopes to close this operation before the end of the year, in order to improve the appearance of its accounts, which will again feature losses.

The Tempore portfolio sold by Sareb is concentrated (80%) in the metropolitan areas of the major capitals, with the remainder located in regions with significant demand in the rental market, such as Valencia, Sevilla, Zaragoza, Málaga and Almería.

Azora is responsible for the management of the portfolio – it performs the administration and marketing activities for the assets directly. The company is led by the Director of Rentals at Sareb, Nicolás Díaz Saldaña. Before his arrival at Sareb, Saldaña was at the helm of the international department at Metrovacesa during the most complicated period of the real estate crisis.

Sareb is selling its Socimi at a time when these types of companies are in the Government’s spotlight, in light of the insistence of Podemos to toughen up the beneficial tax regime that has facilitated the expansion of the vehicles in recent years.

The Bank of Spain has also started to monitor the Socimis as a potential focus of instability for the financial sector and links the rise of these vehicles to the sharp increases in the prices of offices and commercial premises.

Original story: El Independiente (by Ana Antón)

Translation: Carmel Drake

Sareb to Sell 1,769 Rental Homes to its Socimi Témpore for €149M

2 November 2018 – Europa Press

Sareb is going to contribute its first homes to its Socimi Témpore through the transfer of a batch of 1,769 rental properties worth around €149.21 million. The firm was constituted precisely to provide an exit for the portfolio of homes that Sareb inherited from the banks.

This operation will allow Témpore to double its size, given that it currently owns a portfolio of 1,583 flats, and extend its activity to a total of ten provinces, from its current concentration in Madrid and Barcelona.

Sareb and its Socimi are going to materialise the transaction through a non-monetary capital increase, and so the firm is going to issue a package of €12.4 million own shares.

The shares will be issued at a rate of €12.01 per share (the sum of the nominal value and issue premium), a price that is 15.4% higher than Témpore’s share price, which is currently trading at around €10.40 per share.

Témpore is going to approve this operation in an extraordinary shareholders’ meeting, which it has convened for 3 December, according to the agenda for that meeting sent to the MAB.

This is the first transfer of homes that Sareb is going to make to Témpore in the framework of the agreement that the two firms have signed to transfer assets, and it will be completed in the final quarter of the year, as indicated in the 3-year business plan, with which the Socimi debuted on the MAB.

The 1,769 homes that are going to be contributed are located in Madrid, La Rioja, Valencia, Sevilla, Asturias, Murcia, the Balearic Islands, Valladolid and Tarragona, and so the firm will whereby extend its activity, which has been concentrated in Madrid and Barcelona until now.

The final objective of the body chaired by Jaime Echegoyen (pictured above, left) with the launch of this Socimi is to place 4,200 rental homes on the market, worth around €500 million.

By virtue of this business plan, Sareb is going to transfer homes to Témpore until it reaches that volume through the subscription of capital increases (…).

Original story: Europa Press 

Translation: Carmel Drake

Témpore Finalises Purchase of 1,100 Flats from Sareb worth €160M

31 October 2018 – Eje Prime

Témpore Properties is shopping at home. The Socimi, listed on the MAB, is finalising the acquisition of a portfolio of 1,110 homes from Sareb worth €160 million. The company, created by the bad bank, is planning to sign the operation before the end of the year, according to explanations provided by its CEO, Nicolás Días Saldaña, during the Investment in the real estate sector through a Socimi listed on the MAB day, organised by Renta 4 and the CEOE.

The Socimi, which specialises in the rental market, will use own funds to complete the purchase of this package, through which it will benefit from the right of first refusal that it has over Sareb’s assets.

This privilege reflects the interest that the bad bank has in ensuring that Témpore achieves portfolio growth over the next few years to become a reference play in the rental segment and debut on the main stock market before 2021, with a portfolio worth €500 million.

On the other hand, the Socimi is working on the sale of 20% of the company’s dispersed assets. The aim of that plan is to raise capital to use to make new investments in developments and entire blocks.

Currently, Témpore has 1,330 homes in its portfolio and generates revenues from rental income of around €7 million. The Socimi has an occupancy rate of more than 90% and obtains an average gross yield of 4.1% from its assets. The management company’s delinquency rate is 3%.

Original story: Eje Prime

Translation: Carmel Drake

Sareb’s Socimi to Debut on Continuous Market in 2021 with €500-Million Portfolio

5 October 2018

Sareb is moving firmly ahead with its socimi Témpore. The company, which has just presented the latest financial results for its vehicle specialising in residential rental assets, plans to move Témpore from the Alternative Stock Market (MAB) to the continuous market in 2021. The move will occur when the socimi’s portfolio of assets reaches 500 million euros.

The socimi’s goal has been to increase its initial portfolio of assets, which was worth 175.4 million euros, to around 500 million euros within a three year period. This increase in capital would provide sufficient volume to attract more investors and open the door to trading on the continuous market.

According to a statement the company submitted to the MAB, “Témpore is preparing to undertake a capital increase with a new contribution of assets from its main shareholder (Sareb), which we expect to complete before the end of the year… the homes are located mainly in Madrid, Valencia, Seville, Murcia, Logroño and Valladolid.”

Témpore, which debuted on the stock exchange at the beginning of April with almost 1,400 homes for rent, began to study the purchase of more flats owned by the bad bank this summer, aiming to increase its portfolio. The socimi has a three-year framework agreement that entitles it to a right of first offer on any of Sareb’s assets, which has been one of the main levers of its growth.

Témpore’s rental properties are mostly located on the outskirts of large cities or metropolitan areas such as Madrid, Barcelona, Valencia, Seville, Granada and Zaragoza. The houses have an average size of 93 square meters and have two or three bedrooms.

Financial results

Sareb’s subsidiary closed the first six months of the year with losses of 201,000 euros, a period in which its revenues reached 3.3 million euros. These results are in line with the company’s strategic plan and with the forecasts presented in the Document of its Incorporation into the Market, as explained by Sareb in a press release.

Nicolás Díaz Saldaña is the CEO of Témpore Properties. Mr Saldaña is the only executive director with the socimi. Juan Ramón Dios Rial, director of development and real estate development at Sareb, chairs the board of the socimi.

Original Story: Idealista

Translation: Richard Turner

Sareb Sells 13,000 Properties in Year to August, Up 4.9%

5 October 2018

Sareb sold 12,936 properties in the first eight months of the year, 4.9% more than in the same period in 2017, according to the company’s preliminary data. Of these, 8,017 units corresponded to Sareb’s properties, while the remaining 4,919 were assets that were included as loan guarantees and that developers sold through Sales Revitalization Plans (PDV) to obtain liquidity and reduce or cancel their debt with Sareb.

Of the total amount of properties sold, 87% were residential assets (homes and annexes); 8% were plots of land, and the remaining 3% were commercial properties. Regarding the sales of residential assets, the increase in the sale of homes developed by Sareb stands out – both through the developments on lands owned by Sareb itself, as well as through the completion of unfinished developments-, rebounding by 124% to 1,245 units. The sale of commercial properties also grew by 30% year-on-year in the first eight months of the year, while the sale of land increased by 3%.

Sareb’s operations have allowed it to plough ahead with its mandate to liquidate its portfolio of assets, which, by the end of June, had fallen from its initial high by 28.9%, to 36.128 billion euros, according to the data for the first semester of 2018. Of the total value of the portfolio, 66% corresponds to loans to developers and 34% to other types of properties. The company had also reduced its senior debt by 25.4% to €37.875 billion euros by the end of June.

Between January and June, the period analysed in the report, Sareb sold 10,618 properties, 9% more than in the first half of 2017. Of these, 5,926 were assets of were owned by Sareb itself, and 4,692 were properties that were held as a guarantee.

The largest volume of the residential assets sold that were owned by Sareb was concentrated in Catalonia (19.4%), Comunidad Valenciana (17.7%), Andalucía (14.8%) and Comunidad de Madrid (12.6%), according to the Activity Report for the first semester of 2018.

The company generated revenues of 1.5766 billion euros in the first half of the year, of which 62.4% came from the management and sale of loans, and 37.6% from the activity related to real estate.

In the first semester of 2018, Sareb moved ahead with its configuration of a new territorial structure that will allow it to deepen its knowledge of its portfolio and adapt its supply to the demand found in local markets. At the end of June, the delegations in the Valencian Community and Region of Murcia; and Catalonia, Aragon and the Balearic Islands are fully operational, together with the Madrid Center-Canary Islands delegation, launched in 2016. The delegations of Andalusia and the north-east of Spain will soon start operations aimed at boosting sales in those regions and accelerating the strategy of divestment.

In April, Témpore Properties debuted on the Alternative Stock Market (MAB). The socimi funded by Sareb has a portfolio of some 1,400 homes.

Between January and June, Sareb also continued to promote its real estate development activities, aiming to increase the value of its assets before their eventual sale. At the end of June, the company had invested 99.4 million euros in the completion of unfinished works and the development of its land, which together represented the construction of 6,446 properties.

Original Story: Inmodiário

Translation: Richard Turner

Sareb Finalises Creation of a New Company with Aelca to Manage Property Worth €800M

20 July 2018 – El Confidencial 

The Company for the Management of Assets proceeding from the Restructuring of the Banking System (Sareb) has made a change to its property development plan. The so-called bad bank has decided to create a joint venture with a first-rate property developer to manage €800 million in finalist land and developments in progress in several main cities across Spain.

This decision represents a change to Sareb’s initial formula for its property development business, which was going to involve a strategic alliance that would allow the integration of its residential construction and land development businesses into one of the large Spanish property developers. Initially, the chosen entity to form part of this company, according to assurances provided by sources close to the negotiations speaking to El Confidencial, is Aelca.

Sources at Sareb, meanwhile, speaking to this newspaper assure that “at the Board meeting on Thursday, a decision was taken to approve the creation of a vehicle, but the choice of travelling companion and the percentage stakes to be owned by each party in the JV have not been decided yet”.

If the conversations with the property developer founded by Javier Gómez and José Juan Martín prove fruitful, it will end up being responsible for managing so-called Portfolio Casiopea, given that it is the last man standing in the negotiations in which the listed company Aedas Homes has been involved until recently. The future company – likely a banking asset fund – will be owned by Sareb (90%) and Aelca (10%). According to the same sources, the process is in its final phase and the details are being finalised for the signing of the corresponding agreements.

At the beginning of the year, Jaime Echegoyen (pictured above) decided to work on a strategic alliance with a large property developer that would allow Sareb to sell a significant batch of land and compete in the first division of property development in Spain, head to head with the largest players in the sector, such as Aedas, Neinor, Vía Célere and Metrovacesa.

Nevertheless, in recent weeks and after the offers presented by Aelca and Aedas failed to meet Sareb’s price expectations for its land, the bad bank has rethought the whole process, opting for the creation of a joint venture vehicle, in the end, in which it will control the majority. It is in this process in which Aelca has been left alone in the negotiations.

Building 1,500 homes per year

Sareb currently has around 4,300 homes in different stages of development, located in different towns across Spain, which involve a combined investment of around €60 million. Moreover, it is finishing the construction of 2,340 homes that it received unfinished and it is building 2,153 other homes from scratch.

Just over a year ago, Sareb expressed its commitment to become one of the country’s largest property developers by announcing its intention to promote an average of 1,500 homes per year until its liquidation. The company plans to finish building 4,000 new homes, between now and 2020, a clear display of its commitment to residential development (…).

The sources consulted by this newspaper explain that Sareb’s objective is to maximise the value of the assets that it has in its portfolio and, even, in the future, debut the company on the stock market as a way of divesting easily, obtaining liquidity and collecting gains. It is worth remembering that Sareb is already trading on the stock market through its Socimi Témpore Properties, with 1,300 rental homes.

Until now, the formula has been to delegate construction work to different property developers on a project by project basis, however, the strategy to be adopted from now on will generate value from the land to be developed and promotions underway in conjunction with a single partner.

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Sareb Activates the Transfer of a Second Batch of Homes to its Socimi

11 June 2018 – La Información

“Investors are asking us for a larger portfolio, more geographical diversification and, above all, more liquidity”. The CEO of Témpore Properties – the Socimi launched by the bad bank to generate returns from its portfolio of residential rental assets -, Nicolás Díaz Saldaña, speaking at a recent conference organised by the Stock Exchange of Madrid, linked the success of the project with the acceleration of the milestones established in its strategic plan and reaching the objective of listing on the main stock market – which is planned for 2020 – as soon as possible.

The first step in that direction was taken just a few days ago by the team at Témpore Properties when it exercised “the right to submit the first offer” extended to it by the framework of the relationship signed with Sareb and which gives the Socimi priority when it comes to accessing rental assets that the bad bank wants to put on the market, according to sources at the Socimi speaking to La Información (…). On 24 May, the first window was opened for Témpore to expand its portfolio of assets by resorting to Sareb’s funds and the Socimi did not want to miss out on the opportunity.

Témpore made its stock market debut on 3 April 2018 with a portfolio containing 1,553 residential rental assets, worth €152.7 million in total. Its plans – according to its own IPO prospectus – include the intention to expand its portfolio to almost double the size this year with the addition of 1,000 new residential assets worth €160 million, which Díaz Saldaña’s team – which is very familiar with Sareb’s portfolio – has already cast its eyes over.

The Socimi has two opportunities to do this: now in May or later in November when the second window will open for incorporating assets from the bad bank into its portfolio (the agreement that gives priority over Sareb’s assets to Témpore expects such a window to open every six months over the next three years). The problem in both cases is how to finance the operation. The Socimi has a consolidated portfolio of assets but hardly any available capital. Sareb’s 98.51% stake reflects the value of the assets transferred for the creation of the Socimi and the minority stake is distributed between 24 small investors, who have contributed €2.12 million.

Sareb neither wants to nor could increase its stake in the share capital of the Socimi, which means that the acquisitions of the assets proceeding from the bad bank that Témpore executes will have to be undertaken at market prices and following their valuation by an independent expert: otherwise, the entity will either have to borrow or increase its share capital, or both, which according to the sources consulted is the most viable solution given that the Socimi has self-imposed a restriction on its debt capacity equivalent to 40% of its asset value, which leaves a margin of €80 million through that route.

Díaz Saldaña acknowledges that the lack of liquidity on the MAB is a barrier when it comes to attracting institutional investors, but he also recognises that he doesn’t have any choice but to do this if the Socimi wants to strengthen its portfolio to configure a project capable of debuting on the main stock market. For the time being, he says that he has a list of 40 investors interested in providing the €100 million that the company needs to finance this operation.

Geographical diversification

According to the sources consulted, Témpore’s team is already analysing the portfolio of assets offered by Sareb, although the real scope of the operation will depend on the Socimi’s capacity to incorporate new investors into its share capital.

Nevertheless, the objective of the operation is very clear: the geographical diversification of the Socimi’s portfolio of assets (…). Currently, 84% of the Socimi’s residential assets – calculated by market value – are concentrated in Madrid and Barcelona.

The priority is to open up the range of possibilities. The sources consulted specify that options are being evaluated in Valencia, Málaga, Sevilla, Alicante, Valladolid and Logroño (…).

Original story: La Información (by Bruno Pérez)

Translation: Carmel Drake

Investors Increase their Commitment to Rental Housing

3 May 2018 – Expansión

The boom in the residential market, the changing habits in society, the difficulties involved in accessing housing and the increase in mobility have all led to a rebound in the residential rental market in Spain. According to the latest data from Eurostat, more than 22% of Spanish households live in rented properties, although that figure is still well behind the average for the European Union (34%).

In addition, the State Housing Plan, which seeks to encourage rental amongst the younger generation, and the greater professionalisation of the sector, is going to serve to further boost the rental market in Spain.

The change in trend, as well as the increase in residential rental yields, has compelled investors to analyse this business as an alternative to other real estate assets such as offices, shopping centres and hotels.

To lead this market, certain players have redoubled their commitment to rental housing, such as the case of Testa Residencial – the Socimi in which Santander, BBVA, Acciona and Merlin hold stakes – which owns almost 9,300 residential rental properties, with a gross value of €2.275 billion and annual rental income of €72.2 million.

Stock market debuts

That Socimi is preparing its leap onto the market, which will be carried out through an offer of its existing shares (OPV) and an issue of new shares (OPS) aimed exclusively at qualified investors.

One of the first players to back this business was Blackstone, which purchased 18 residential developments, containing 1,860 homes in total, in the Madrilenian neighbourhoods of Carabanchel, Centro, Villa de Vallecas and Villaverde from the Municipal Housing and Land Company of Madrid (EMVS) in July 2013. In 2015, the fund debuted its Socimi Fidere on the MAB (Alternative Investment Market) with 2,688 social housing properties, including those acquired from the EMVS two years earlier. Currently, Fidere owns around 6,400 homes for rent.

The fund also debuted Albirana on the MAB in March 2017 with a portfolio of 5,000 rental homes proceeding from Catalunya Banc loans. Another star of the real estate sector that has detected an opportunity in the rental sector to offload its assets is the Company for the Management of Assets proceeding from the Restructuring of the Banking System (Sareb) with Témpore Properties. That Socimi debuted on the MAB in April with a portfolio of 1,553 residential units, which have a gross value of €175 million.

Another player is Vivenio Residencial, the investment vehicle created by the Dutch pension fund APG together with Renta Corporación. Vivenio has invested around €200 million in the purchase of properties and now owns more than 1,000 rental homes. The Socimi plans to debut on the stock market in 2019.

According to data from Armabex, in 2017, five new Socimis debuted on the stock market with residential assets in their portfolio. In total, at the end of last year, 16 Socimis held rental homes in their portfolios, including, in addition to Fidere and Albirana, Vitruvio, VBare, Colón Vivienda and Domo.

In addition to the listed Socimis, other players in the sector include the real estate managers. One of the largest by volume of assets under management is Anticipa Real Estate, owned by Blackstone. Anticipa currently manages 12,000 homes proceeding from banks acquired by the fund during the crisis. Anticipa manages Albirana’s homes, amongst others.

Another star in the rental home manager sector in Spain is Azzam Vivienda – a subsidiary of Azora – which has more than 11,000 homes under management distributed across 140 buildings.

Azora, which will make its debut on the Madrid stock market on 11 May, plans to raise up to €500 million from its stock market debut to co-invest with its partners in various assets, including in the residential sector.

New players

The company founded by Concha Osácar and Fernando Gumuzio in 2003, was managing €1.5 billion in residential assets at the end of last year, which represented 33.4% of its total portfolio. It plans to increase its footprint in the sector to have between €1.3 billion and €1.6 billion under management by 2022 in homes, accommodation for the elderly and assets relating to healthcare.

Despite the increasing prominence of the rental sector, the business is still very fragmented and one of the challenges for the sector is to gain scale in order to compete. Juan Manuel Acosta, CEO of Greystar in Spain, said in an interview with Expansión in February that the US real estate investment firm is looking for opportunities to become one of the largest operators in the residential rental market in Spain.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Témpore Debuts on the MAB with a 7.7% Share Price Increase

4 April 2018 – Expansión

The shares of Témpore Properties made their stock market debut yesterday and enjoyed a notable rise despite the wider context of share price decreases. Sareb’s Socimi joined the Alternative Investment Market (MAB) and will list through the fixing system, whereby its share price will be adjusted twice a day, following two auctions. In the first of them yesterday, after the bell was rung, Témpore’s share price had risen by 4.8% to €10.90 with respect to its reference rate of €10.40 at which it had started trading. The company incorporated 14.68 million shares for trading in total, and so, after its first day of trading, the company had a market capitalisation of €164.4 million. Yesterday, 18,952 shares were traded, worth €197,700.

Juan Ramón Dios and Nicolás Díaz Saldaña, the Chairman and CEO of the company, respectively, were responsible for ringing the bell yesterday, together with Jaime Echegoyen, Chairman of Sareb. Saldaña highlighted the specialist nature of the company, which is going to allow it “to optimise its income statement”, as well as the absence of debt, which is why “we have scope to look for resources to undertake our expansion”.

Témpore has begun its life on the stock market with 1,383 homes in Madrid and Barcelona and a housing stock worth around €152 million. Its growth strategy for the next three years includes the purchase of batches of homes from the bad bank to reach 4,200 properties. The purchases will be financed through capital increases in which it expects to open itself up to institutional investors.

The first operation is planned for the end of the year. Saldaña expects to have assets under management worth between €350 million and €400 million. Within three years, he plans to have net assets worth between €500 and €600 million; make the leap onto the main stock market; reduce Sareb’s participation to a minimum; and “make way for strategic investors who will provide stability over the medium and long-term”, said Saldaña.

The CEO has set the following objectives for the company, to begin with: improve the occupancy rate, reduce the default rate and increase rental income, in such a way that the yield exceeds 5%, from the current level of less than 4%.

Similarly, he wants the firm to have a leading role in the consolidation of the sector, given that “in two years, there is going to be a concentration process due to the growth challenges resulting from the scarce supply”.

Original story: Expansión (by R. Martínez)

Translation: Carmel Drake