TPG Reaches Deal on Preferential Access to €175 Million of Sareb’s Assets

20 August 2019

TPG, which recently acquired Témpore Properties, has signed an agreement with Sareb maintaining its partnership with the state company.  Témpore will thus maintain a right of refusal for over 175 million euros in assets owned by the Sareb.

Original Story: La Información – Lucía Gómez

Adaptation/Translation: Richard D. K. Turner

Sareb Sells 75% of Témpore to TPG

5 July 2019

Sareb reached an agreement to sell 75% of Témpore, a socimi that focuses on rental apartments, to the US fund TPG, for 246.75 million euros. The bank bad held onto a 24.12% stake in the socimi to take advantage of any potential future upside. At the same time, however, Sareb emphasised its commitment to a long-term policy of divestment.

Sareb created Témpore at the end of 2017 and the socimi debuted on Spain’s MAB in early 2018. The firm currently controls 2,249 apartments and garages, making it the third largest player in the sector after Blackstone and Azora. Of this portfolio, 834 flats are in Madrid and another 269 in Barcelona and the rest distributed by other fourteen provinces.

Original Story: Europa Press

Adaptation/Translation: Richard D. K. Turner

 

Árqura Homes: Sareb Launches a Property Developer to Build 17,000 Homes

11 June 2019 – Europa Press

Sareb has constituted its own property developer, Árqura Homes, through which it plans to build and sell 17,000 new homes over the next decade with an investment of €2.2 billion. The new entity looks set to rival the country’s main listed property developers on the basis of its land portfolio and investment plans.

Árqura has been constituted following the transfer of land and developments underway worth €811 million. 56% of its portfolio corresponds to just over 2 million m2 of land, 41% corresponds to developments in progress and the remaining 3% are developments that have been suspended.

The bad bank led by Jaime Echegoyen (pictured above) is going to team up with Värde for this initiative, which will hold 10% of Árqura’s share capital. Moreover, Aelca, a real estate company controlled by the US fund, will be responsible for the management and marketing of the new homes.

This operation represents Sareb’s second foray into the real estate market through the launch of its own firm after it launched the Socimi Témpore at the end of 2017. That firm became the third largest rental home company in the country and is currently on the verge of being sold to the fund TPG.

In the case of Árqura, it hopes to reach its cruising speed in terms of development between 2021 and 2022 and of homes deliveries between 2023 and 2024. Its homes will be distributed across 15 regions, although more than half (58%) will be concentrated in the most sought-after regions of the Community of Madrid, Cataluña and Andalucía.

Original story: Europa Press

Translation/Summary: Carmel Drake

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

Ares Creates a Socimi to Invest up to €1bn in Rental Housing in Madrid

7 March 2019 – Idealista

The US fund Ares Management is creating a Socimi to invest up to €1 billion in residential assets for rental in Madrid. The firm wants to benefit from the boom in the rental market in Spain and has already raised €250 million to invest.

Ares first expressed its interest in the market last year when it submitted a bid to acquire Sareb’s rental home Socimi, Témpore. However, that operation was called off by the bad bank in favour of a more orderly sales process (now underway).

Ares is a listed company, founded in 1997, which manages alternative assets worth around USD 88 billion. It has 15 offices in the USA, Europe and Asia.

Original story: Idealista (by C. Pareja & P. Martínez-Almeida)

Translation/Summary: Carmel Drake

Sareb Re-Opens the Bidding for its Renting Housing Socimi Témpore

7 March 2019 – El Confidencial

Sareb is putting up for sale the rental home Socimi that it constituted just over a year ago. Témpore, the third largest rental home firm in the country, after Blackstone (24,000 homes) and Azora (7,000 homes), owns 2,249 homes worth around €340 million. Candidates have two months to submit their binding offers.

The bad bank constituted Témpore in 2017 to provide an exit for a portfolio of homes proceeding from the bank restructuring process, and a few months later, it debuted the firm on the MAB.

The Socimi’s portfolio generated rental income of €7.3 million last year, up by 1.3% YoY, thanks to the renewal of contracts with the consequent increase in rents.

Témpore is sparking a great deal of interest amongst investors, providing further evidence of the appeal of the Spanish real estate market, especially the rental segment, for overseas investors.

Original story: El Confidencial 

Translation/Summary: Carmel Drake

Témpore Cut its Losses by 46% in 2018

27 February 2019 – Europa Press

Témpore, the rental home Socimi constituted by Sareb to provide an outlet for its residential portfolio, closed 2018 with a net loss of -€384,394. That figure represents a 46% reduction in the losses recorded a year earlier, according to reports from the firm, which is listed on the MAB.

The result also improves on the forecasts set out by the company in its listing prospectus by 13%.

Témpore’s portfolio of 2,249 homes and parking spaces generated revenues from rental income of €7.3 million last year, up by 1.3%, thanks to the renewal of contracts and the consequent increase in rents.

The increase in the firm’s housing stock, through a contribution from Sareb by a non-monetary capital increase, did not have any impact on last year’s accounts because it was not closed until the end of the period.

Nevertheless, it allowed Témpore to close the year with assets worth €339 million, a figure that almost doubles (+93%) the volume in the year of its constitution and, which, according to its data, consolidates the firm’s position as the third largest rental home company in the country.

Higher rents, lower defaults

In operational terms, the Socimi managed to reduce the default rate of its tenants to 4%, compared with 5.5% at the end of 2017.

Moreover, it achieved an average increase in rental prices of 12% for the new contracts it signed and its contract renewals (…).

Original story: Europa Press 

Translation: Carmel Drake

Sareb Invites 20 Investors to Participate in the Sale of its Socimi Témpore

20 December 2018 – El Economista

A formal process is being launched after initial interest was received from three buyers, including one that stood out from the US fund TPG.

On Tuesday, Sareb opened a formal process to sell Témpore, its rental home Socimi, according to confirmation provided by sources in the sector speaking to El Economista. The bad bank, which has not engaged an external advisor for this divestment process, has invited 20 investors to participate.

In November, Nicolás Díaz Saldaña, CEO of the residential company, acknowledged that a Data Room had been enabled containing information about the Socimi and that access had been granted to it for five investors interested in the acquisition of Témpore.

In the end, three offers were received, of which the ones from Ares and TPG stood out, the latter being the highest. In light of the expressions of interest, Sareb decided to raise the matter to its Board of Directors, which yesterday launched an orderly sales process in which investors may participate by invitation only.

According to the same sources, Sareb has not imposed any conditions regarding what percentage of its stake is for sale (it held 98.38% at the end of June), and so it will be open to all offers.

The Socimi has just carried out what will be its last non-monetary capital increase subscribed by Sareb amounting to €150 million to acquire 1,769 assets in total, of which 850 are rental homes. The operation, which forms part of the right of first refusal agreement (ROFO), which Sareb and the Socimi signed, allows Témpore to double in size to reach €325 million.

Growth plan

Before announcing the sales process, Témpore had a growth plan underway with the aim of achieving a portfolio worth €500 million and in this way having sufficient volume to make its debut on the main stock market. That was explained at the time by Díaz Saldaña, who noted that in order to continue growing, “we will have to look for financing, be it from the bank or an alternative, such as a bond issue”.

Amongst the different options, the Socimi is analysing the purchase of whole buildings of rental homes and is also studying the acquisition of developments under construction that are currently in the hands of Sareb. In addition, it is considering buying turnkey projects through delegated promotion. “In the case of the latter, the first projects would be with Sareb, given that at the moment, for the other property developers that we have spoken to, it is more profitable for them to sell in the retail market”, said the CEO.

Meanwhile, yesterday, Sareb announced the sale of some land in the Torre Salses area, in Lleida, for the construction of a large shopping centre, spanning more than 60,000 m2. Eurofund Capital Partners has paid €8.3 million for that plot, whose sale was agreed in 2016.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Sareb’s Board Suspends the Sale of its Socimi Témpore to Launch a ‘Transparent Process’

19 December 2018 – El Independiente

The sale of Tempore Properties, the Socimi owned by the Company for the Management of Assets proceeding from the Restructuring of the Banking System (Sareb), was almost a done deal, but the plug has been pulled at the final hurdle. Sareb and the investment fund TPG were in the midst of closing the final details of the operation when the Board of the so-called “bad bank” decided to reject the offer. To the bewilderment of the US group, the directors of Sareb have demanded the launch of an ordered and transparent sale process, according to sources familiar with the events speaking to El Independiente.

Tempore, which has just carried out a non-monetary capital increase for €150 million and which will soon manage 3,300 real estate assets worth €325 million, received several offers at the end of November. The bid from TPG was successful over the others, but the process did not have all of the guarantees, and so the members of Sareb’s Board of Directors took the decision to block the transaction.

“It makes sense, especially taking into account the legal problems that could be generated if a government agency participates in exclusive processes”, indicated sources in the sector. “The directors have to be increasingly careful with the operations that they approve or they may incur serious faults”, added another.

In this way, the entity that it seemed was going to become the new owner of the Socimi, TPG, is the shareholder of companies such as Spotify, Airbnb, Burger King, Lenovo, Ducati and Grohe, amongst others.

Sareb, in which the State owns a 45% stake, wanted to close the operation before the end of the year and improve the appearance of its accounts, which are set to report losses, for another year. Now, however, that operation will have to wait until 2019.

The Tempore portfolio being sold by Sareb is concentrated (80%) in the metropolitan areas of Spain’s major capitals, with the remaining assets located in geographical areas with significant demand in the rental market, such as Valencia, Sevilla, Zaragoza, Málaga and Almería.

Azora is responsible for the management of the portfolio, specifically for the administration and sale of the assets. The Socimi is led by the Director of Rentals at Sareb, Nicolás Díaz Saldaña. Before joining the bad bank, Saldaña led the international team at Metrovacesa during the toughest period of the real estate crisis (…).

Several sources in the financial sector have indicated that Sareb must maximise the cleanliness of the operations that it participates in, especially after some institutions have been called out for irregular sales.

The Bank of Spain took Sareb to task over some suspicious activity following an inspection, according to a report to which El Independiente has had access.

Original story: El Independiente (by Ana Antón)

Translation: Carmel Drake

Sareb to Sell its Rental Home Socimi Témpore to TPG & Ares

2 December 2018 – Tercera Información

Sareb, the financial institution that has a large volume of public capital is going to sell one of its Listed Real Estate Investment Companies (Socimis), Témpore, which manages a stock of thousands of rental homes, to the US vulture funds TPG and Ares. The operation comes at a time when the experts are warning about the emergence of a new speculative bubble in the real estate sector.

The Company for the Management of Assets proceeding from the Restructuring of the Banking System (Sareb), known as the “bad bank”, an entity financed using public capital, which is responsible for managing the toxic assets of the financial entities created during the bubble, has announced the imminent sale of the Socimi Témpore. That corporation was created just a year ago and owns thousands of rental homes.

The Socimis, Listed Real Estate Investment Companies, are a resource created to manage enormous batches of housing in the hands of private investors. Témpore is one of the large companies created by Sareb to manage the rental properties it inherited during the so-called bank restructuring process. Created just a year ago, Sareb has always announced its intention to resell the properties in the private market.

The buyers are the private equity firms TPG and Area, according to reports from financial newspapers yesterday. The agreement at a time when Témpore is on the verge of incorporating a large batch of homes, which means that it will have 3,357 flats in total, making it the third largest company with most properties in the market.

Similarly, according to the information published about the agreement, Sareb is going to continue to transfer homes to the Socimi until November 2020.

The sales process is particularly significant at a time when the real estate market seems to occupy the centre of attention of the large investment volumes in the country’s economy. Far from the fear of a repeat of the collapse of the market similar to that experienced at the start of the economic crisis and becoming immersed again in a dynamic of using land and properties as main investment assets, the financial institutions of private equity firms, such as the US player Blackstone, are acquiring large volumes of homes through the purchase of these Socimis (…).

Original story: Tercera Información (by Christian Zampini)

Translation: Carmel Drake