Spanish property group Inmobiliaria Colonial has acquired an additional 13.3% stake in local peer Axiare Patrimonio and launched a bid for the remaining 71.4% of the shares in a transaction valued at €1.2 bn.
Under the proposed bid, Colonial is offering €18.50 per share for Axiare in cash, which represents a 13% premium over the spot price of Axiare shares and 21% over the last reported NAV as of June 2017.
Colonial, which first bought into Axiare's share capital more than a year ago with the purchase of 15% of the company's shares, expects to close the transaction during the first half of 2018.
‘This transaction reinforces the growth trajectory of Colonial and consolidates its leadership position as one of the leading European real estate companies with great ability to generate value,’ said Juan José Brugera, chairman of Colonial.
The acquisition of Axiare will increase Colonial’s portfolio by €1.7 bn and take the value of its AUM to €10 bn. The combined portfolio will total 1.7 million m2 of assets under operation together with 330.000 m2 in assets under development.
Colonial said the deal will consolidate its position as the leading European platform for the prime office market in Paris, Madrid and Barcelona. With 74% of offices and 77% of the portfolio located in Madrid, Axiare's portfolio is ‘highly complementary’ to Colonial portfolio’s strategy, location and characteristics, it said.
Colonial Group listed as a Spanish REIT or Socimi earlier this year. It is active in the main business areas of Barcelona, Madrid and Paris with a prime office portfolio of more than one million m² and assets under management of more than €8.6 bn.
Post-transaction, the exposure to Spain, which currently accounts for 31% of the value of Colonial's assets, will increase to 42%. The bulk of the portfolio of the combined entity - 58% - will be located in Paris, while the portfolio of offices in Madrid and the portfolio of assets in Barcelona will represent 27% and 10% respectively.
