Global alternatives investment firm Cerberus has announced plans to merge Divarian, the joint venture company it created with BBVA after buying the bank's real estate assets, with its Spanish real estate debt and property manager Haya Real Estate.
Cerberus acquired a portfolio of over 60,000 properties from BBVA in October 2018, comprising mostly residential assets, but also including commercial, logistics premises and land parcels. Reports at the time priced the deal at around €4 bn.
Haya Real Estate will take over management of the assets, whilst Divarian's management and in-house property management capabilities will be integrated in the merged business.
Divarian is 80% controlled by Cerberus, while BBVA holds the rest.
Cerberus moved into Spain in 2013 with the purchase of Bankia Habitat, the property arm of Spain's Bankia, which became Haya Real Estate.
The US group's subsequent deals with Bankia, Sareb, Cajamar and Liberbank broadened the Haya servicing platform, with the Divarian deal set to consolidate its position as the largest service provider in Spain.
The debt and property manager achieved record revenues of €273.7 mln for 2018 after winning five new servicing contracts. Following the merger, Haya will have a total of €49 bn assets under management.
Earlier this year, Cerberus mooted plans to list Haya Real Estate on the stock market, an option apparently shelved due to political instability in Spain. A new strategy for Haya is believed to include selling the company outright, with advisor Rothschild already in contact with interested parties, according to media reports.
The merger is expected to complete in June.
