Lar España Raises €104M To Finance New Purchases

16 March 2017 – Expansión

Lar España has signed two financing agreements with ING and BBVA amounting to €103.9 million. The Socimi intends to use the funds raised to acquire new assets over the next few months.

Following the signing of these agreements, the Socimi now has debt amounting to €558 million, of which €418 million corresponds to bank loans, with the remaining €140 million relating to a bond issue carried out at the beginning of 2015.

In this way, Lar España’s net gearing ratio currently equals 33% of the gross value of its assets and will rise to 38% once the latest funds have been invested. The Socimi has highlighted that “it still has a long way to go” before its financing increases to 50% of fixed leverage.

Meanwhile, Credit Suisse’s funds have acquired a 4.31% stake in the Socimi Lar to become one of its significant shareholders alongside the US manager Pimco, which owns a 20% stake, Franklin Templeton (15%), Brandes Investments (5%), Bestinver (4.1%), Blackrock (3.6%) and Threadneedle Asset Management (5%).

Original story: Expansión

Translation: Carmel Drake

Pimco Increases Its Stake In Lar España To 19.87%

24 November 2016 – Expansión

Pimco, the largest fixed income manager in the world, has increased its stake in the Socimi Lar España to 19.87%, after passing the 17% threshold last week. The company is standing by its intention to not exceed 30% of the Socimi’s share capital, which would force it to launch a takeover bid for 100% of the company.

This operation strengthens Pimco’s position as the largest shareholder of Lar España, a position that it achieved on 17 November, after acquiring a 4.6% stake in the Socimi for €29.7 million. In that move, Pimco bought 4.16 million shares from Lar España at a price of €7.15 per share, 11% more than the closing price of the shares on the day before the operation. Until then, its stake amounted to 12.4%.

After Pimco, the next largest shareholder is Franklin Templeton, with a 15% stake. Threadneedle Asset Management and BlackRock also hold stakes in Lar España: 5% and 3.06%, respectively, according to the records of the CNMV.

More profits

Between January and September, the Socimi earned €46.6 million, up by 77% compared to 2015, driven by an increase in revenues from rental income and the expansion of its real estate portfolio. Its EBITDA improved by the same proportion, to €30.3 million. Meanwhile, revenues grew by 80% to €42.2 million.

Lar España’s shares closed trading yesterday at €6.97/share, down by 0.43%. So far this year, the Socimi’s share price has fallen by 15.83%.

Original story: Expansión

Translation: Carmel Drake