France's Financière Colbert has closed the purchase of a 70% interest in the Spanish real estate developer and investment management company Restaura from its founder, the Solano family. Although the transaction volume was not disclosed, it is understood that Colbert is buying the company for a symbolic amount, with a commitment to provide equity to enable the company to resume development on a number of projects.
France's Financière Colbert has closed the purchase of a 70% interest in the Spanish real estate developer and investment management company Restaura from its founder, the Solano family. Although the transaction volume was not disclosed, it is understood that Colbert is buying the company for a symbolic amount, with a commitment to provide equity to enable the company to resume development on a number of projects.
Grenoble-based Colbert, which signed a preliminary agreement with Restaura in September, is assuming debt of EUR 450 mln in exchange for a controlling interest in the company, while committing to invest a further EUR 25 mln in the company to boost its finances.
At a later stage, Financière Colbert intends to inject more own capital aimed at strengthening the business model of Restaura. The Solano family is retaining the remaining 30% of the company.
Following the operation, François Moulias will assume the position of president of the board of Restaura, substituting Xavier Solano.
Barcelona-based Restaura is still in negotiations with a consortium of 26 lenders to refinance its debt load, with an agreement expected in the near future. The company recently sold three office buildings in Paris to Luxembourg-registered fund RLM for EUR 55 mln. The proceeds were used to pay down a EUR 38 mln loan with BBVA, Sabadell and BCME.
Restaura, which specialises in the construction of residential and office properties, had a property portfolio worth around EUR 2.4 bn in early 2008, before starting a forced divestment and cost-reduction programme as a result of the financial crisis.
