US Fund King Street Capital Acquires 3.92% of Neinor Homes

5 April 2018 – Eje Prime

King Street Capital is knocking at the door of Neinor Homes. The US fund has purchased a 3.92% stake in the Spanish property developer, a percentage that, at current market prices, is worth €45.6 million, according to the records held by Spain’s National Securities and Exchange Commission (CNMV).

The US investment fund is acquiring a stake in the listed real estate company at a time when the company led by Juan Velayos is undergoing significant changes. In a shareholding dominated by overseas institutional investors, Adar Capital stands out with 27.8% of the share capital. The Israeli fund increased its stake in Neinor from 5.2% to almost 30% in a matter of weeks, the threshold that would oblige the company to launch a takeover bid for the entire firm.

In the last week, another foreign fund, in this case from Luxembourg, Alken Fund, has acquired 3.11% of the property developer, whose main secondary shareholders are Bank of Montreal, with a 5.20% stake; Invesco, which also controls 5.2%; Wellington Management Group, which holds 4.9%; and Norges Bank, owner of 4.5%.

Currently, Neinor Homes has 71 housing developments underway in Spain, comprising 5,470 homes, after launching five new developments with 528 homes in the third quarter of last year. The property developer’s plans involve investing more than €1.5 billion over the next five years to hand over up to 15,000 homes.

Original story: Eje Prime

Translation: Carmel Drake

Israeli Fund Adar Asks for Two Seats on Neinor’s Board

15 March 2018 – Expansión

The Israeli fund Adar is claiming its space at the table of Neinor’s most senior executive body. After taking ownership of 24% of the property developer and buying almost 18% of the real estate company’s shares in just one month, Adar has requested two seats on the Board of Directors.

To this end, Adar has asked that its request be included on the agenda of the next meeting, which is scheduled for 17 April at the first call, or, if the necessary quorum is not reached, for 18 April.

Adar has proposed the appointment of Jorge Pepa and Francis Btesh as proprietary directors. In this way, the group’s Board of Directors would comprise nine members, up from the current number, seven.

The last change in Neinor’s Board of Directors took place with the departure of Dominique Cressot, a Director who represented the fund Lone Star, which sold the last remaining share package that it owned in the company last January.

In his place, the shareholders appointed Alberto Prieta, Managing Partner of the Real Estate team at BDO, as an independent director.

Adar, which first acquired shares in Neinor when the firm made its stock market debut almost a year ago, is now the real estate company’s largest shareholder, ahead of the Bank of Montreal (5.2%), Norges Bank (5.06%), Invesco (5.02%), Wellington Management Group (4.96%) and Ksac Europe (4.2%). The fund controls a package worth €296 million.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Israeli Fund Adar Increases its Stake in Neinor to 9.2%

15 February 2018 – Eje Prime

Adar has taken more power in Neinor Homes. The Israeli fund manager Adar Capital Partners has increased its stake in the real estate firm to 9.2% from the 5.2% that it had held until now, whereby becoming the property developer’s largest shareholder.

What’s more, if we add the 2.6% stake that Adar controls indirectly through derivatives, then the percentage held by the fund in the company increases to 11.88%, which is worth €168 million at current prices, according to the registers of the National Securities and Exchange Commission (CNMV).

In this way, Adar Capital Partners has taken over Lone Star’s role as the largest shareholder of Neinor, after the US fund sold its stake in the real estate company that it had constituted, and exited its share capital.

Besides the Israeli manager, Neinor’s other reference shareholders include several other overseas institutional investors. In this way, Wellington Management Group holds an 8.6% stake, Fidelity owns 6.8%, Norges Bank holds 4.9% and Bank of Montreal has 3%.

Neinor currently has 71 housing developments underway across Spain, totalling 5,470 homes, after launching five new developments containing 528 homes during the third quarter of last year.

Original story: Eje Prime 

Translation: Carmel Drake

Norwegian Pension Fund Acquires 4.8% of Neinor Homes

17 January 2018 – Expansión

The Norwegian Pension Fund has acquired a 4.8% stake in the share capital of the property developer Neinor Homes. This package, acquired through the manager Norges Bank Investment Management has a market value of around €70 million. The sovereign fund of the Nordic country is positioning itself as one of the key investors in the company led by Juan Velayos, together with several other international funds, including Wellington Management Group, with an 8.5% stake; Fidelity (6.8%); Adar Capital Partners (5.2%); Invesco (5.01%); King Street Capital Management (3.9%); and the Bank of Montreal (3.25%).

The Norwegian Fund first acquired shares in the company when it debuted on the stock market last year and has taken advantage of the two accelerated placements made by the US fund Lone Star to strengthen its position in the share capital of the property developer. Lone Star exited the capital of the company, which it constituted three years ago with the purchase of the real estate subsidiary of Kutxabank, a week ago, after selling the 12.5% stake that it still controlled.

In March 2017, the US fund placed 40% of the shares that it owned on the market as part of the stock market debut, and in September, it sold off another 27% stake through an accelerated placement that generated proceeds of €395 million and decreased its participation to around 13%.

Incentives

Finally, a week ago, Lone Star sold an additional 12.5% stake for €173 million – also through an accelerated placement. Following that sale, Lone Star retained 350,918 shares in Neinor, representing approximately 0.4% of the firm’s share capital, which it is reserving in order to agree the requirements for the incentive plan for directors.

The company’s shares closed at a price of €18.54 yesterday, having fallen by 0.64%.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Neinor Homes Sells 3.25% Of Its Share Capital To Bank Of Montreal

17 November 2017 – Eje Prime

The Bank of Montreal has become a shareholder of the property developer Neinor Homes, in which it has acquired a 3.25% stake. The percentage is worth around €47 million on the basis of the current share price for the real estate developer.

Specifically, Bank of Montreal has purchased a package of 2.43 million shares in Neinor, equivalent to 3.08% of its share capital, in a direct way, and another 140,000 (0.17%) through financial instruments, according to the records of Spain’s National Securities and Exchange Commission (CNMV).

Canada’s oldest bank has whereby joined the list of qualified international investors who hold a stake in the firm, led by Juan Velayos as CEO, since it debuted on the stock market in March.

In addition to Lone Star, the US fund that constituted the company and still controls 13% of its share capital, the shareholders of the real estate company include Wellington Management Group, with a 8.5% stake, Fidelity with another 6.8%, Invesco (4%) and King Street Capital Management (3.9%).

Neinor currently has 71 housing developments under construction in Spain, comprising 5,470 homes, after launching five new developments containing 528 homes in the third quarter of the year.

Original story: Eje Prime

Translation: Carmel Drake