Orion Capital Managers, the largest shareholder in Neinor Homes, has provided €100m of the Spanish residential developer’s €140m fundraise.
Orion Capital’s stake in the firm, which was previously diluted from 29.8% to 24.6%, has increased to 28.8% following the fundraise.
Neinor said the €140m accelerated bookbuild also saw existing shareholders taking the remaining €40m of the shares that were issued at a 6.4% discount to the previous day’s closing price.
Neinor said it will use the proceeds to pursue expansion in its build-to-sell and alternative living segments.
Borja García-Egotxeaga, CEO of Neinor Homes, said: “We are very pleased with the outcome of this transaction and the continued support from Orion Capital, which once again demonstrates its confidence in Neinor’s long-term strategy and growth potential, as well as from institutional investors who have reaffirmed their backing.
“The proceeds will allow us to continue expanding in the most attractive segments of the Spanish market while maintaining a disciplined approach to capital deployment.”
Jordi Argemí, deputy CEO and CFO, said: “This capital raise further strengthens Neinor’s balance sheet and enhances our capacity to execute on the pipeline currently under analysis.
“The participation of our cornerstone shareholder alongside other long term institutional investors underscores the strong confidence in Neinor’s strategy, execution, and value creation potential.”
Argemí added that, following Orion Capital’s €50m equity investment in Neinor’s asset management business in 2023, “Orion’s participation in this transaction represents a renewed show of commitment to the company and its long-term vision”.
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