The acquisition, which was partly funded with an €800 mln bond issue, increases Colonial’s portfolio by €1.7 bn and takes the value of its AUM to over €10 bn. The combined portfolio will total 1.7 million m2 of assets under operation together with 330.000 m2 in assets under development.
'The objective set with this transaction was successfully completed, and it strengthens Colonial’s growth strategy for the coming years offering an attractive shareholders value creation potential based on the combination of both companies,' commented CEO Pere Viñolas.
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 first bought into Axiare's share capital more than 18 months ago with the purchase of 15% of the company's shares.
The company listed as a Spanish REIT or Socimi earlier this year. It has enjoyed a 17% increase of its share price since monting the bid.
Post-transaction, the company's 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.
