A EUR 450 mln portfolio being sold by the Catalan government in an effort to boost finances has drawn several bids from both local and international players, Spanish brokerage firm Aguirre Newman told PropertyEU.
A EUR 450 mln portfolio being sold by the Catalan government in an effort to boost finances has drawn several bids from both local and international players, Spanish brokerage firm Aguirre Newman told PropertyEU.
'Investor interest in the assets is proving strong so far as we were able to collect many offers for single properties, mostly from private investors, as well as a number of bids for the entire portfolio,' said the firm, which is managing the sale of roughly half the assets. 'We are confident that we can close the transaction by the end of the year,' it added.
Aguirre Newman said it will now start evaluating the offers received earlier this week. A second round of bidding is expected shortly.
Catalonia's debt-laden regional authorities are offloading two portfolios consisting of 26 office buildings. The portfolios, comprising 13 properties each, all in Barcelona's city centre, are being sold through a sale-and-leaseback whereby the Catalan government is committing to occupy the assets for a minimum period of 25 years. Trophy assets include Barcelona stock market on Paseo de Gracia, as well as the Catalan Agriculture Ministry on Gran Via.
It is understood that the Catalan authorities are prepared to pay up to EUR 36 mln in annual rental fees, which brings the deal's maximum initial yield to 8%.
Aguirre Newman and law firm Deloitte have been mandated to sell one portfolio, valued at EUR 221 mln, while Jones Lang LaSalle and law firm Roca Junyent were picked for the remaining EUR 228 mln of assets.
The Catalan government is the second Spanish regional authority to announce a large property sell-off. Andalusia, one of the country's most indebted regions, is trying to find buyers for 76 properties including the cultural department in Granada and the headquarters of the Ministry of Interiors and Justice on the Plaza Nueva in Sevilla.
BNP Paribas was hired earlier this year to manage the sale of the portfolio, which mostly consists of secondary assets and is valued at up to EUR 600 mln. It is understood that discussions are ongoing with an unnamed UK private equity player.
