Habitat offers EUR 2 bn for Ferrovial

Spanish property company Habitat has launched an offer for peer Ferrovial Inmobiliaria, and is currently the front-runner in the bidding together with Lubasa, Spanish newspaper BolsaCinco reported. Although the price of the offer was not disclosed, sources close to the company said the transaction is valued around EUR 2 bn.

Habitat is a middle-size company in Cataluña specialised in residential property. It is currently pursuing a growth strategy and the acquisition of Ferrovial, a real estate company active in 40 cities in Spain, would launch Habitat into Spain's national market. Ferrovial Inmobiliaria, also specialised in the residential market, had a turnover of EUR 813 mln in 2005, the third-largest income source for the Ferrovial group, BolsaCinco said.

The family-owned company Habitat had a turnover of around EUR 150 mln in 2005. Its portfolio comprises a plot of land for the development of 2,000 homes and 50,000 m² for office use. Lubasa, the other major runner in the bidding, is a well-known Spanish property company. In 2005, its turnover was in the order of EUR 475 mln.