Investment bank Goldman Sachs, Germany's Patrizia, Spanish REIT Hispania and US asset manager Blackstone are believed to be among the big names circling Testa's 1,500-property strong residential portfolio in Spain.
Investment bank Goldman Sachs, Germany's Patrizia, Spanish REIT Hispania and US asset manager Blackstone are believed to be among the big names circling Testa's 1,500-property strong residential portfolio in Spain.
According to a news report by Spanish paper Expansion, Testa's new owner, Spanish REIT Merlin Properties is looking to divest the package through Deloitte and CBRE for around €300 mln.
The portfolio comprises 11 buildings in Madrid, Toledo and Guipúzcoa., with an occupancy rate of 96%. It contains both unsubsidised and social housing properties, as well as around 30 commercial premises and an optional 640 parking spaces.
The sale, which is expected to be finalised before the end of the year, will be used to reduce Testa’s €1.6 bn of debt prior to the integration with Merlin.
Merlin currently owns 77% of Testa, after agreeing to buy the company in phases from builder Sacyr. It bought an initial 25% stake through a capital increase and committed to pay a total of €1.8 bn to take full control of the real estate unit, its largest acquisition since launching on the stock market in spring 2014.
Merlin acquired a further 25% interest in July and another 27%August. The company expects finalise the takeover by June 2016.
Testa is a €3 bn Spanish property company and formerly the real estate subsidiary of construction Group Sacyr. The merger between Merlin and Testa will create a property giant with assets of around €5.5 bn and gross rents of €290 mln. The portfolio will consist of just under 1,000 assets, largely offices in the major cities of Madrid and Barcelona.
