Merlin Properties debuted with the largest listing ever of a European real estate investment trust (REIT) on Monday, but by the afternoon it was trading 1.3% down on its opening price of €10 per share.
Merlin Properties debuted with the largest listing ever of a European real estate investment trust (REIT) on Monday, but by the afternoon it was trading 1.3% down on its opening price of €10 per share.
The size of the IPO was set at 125 million shares, representing a market capitalisation of €1.25 bn, excluding the over-allotment option that was set at a maximum 8 million shares.
In terms of size, Merlin Properties is the largest IPO in Spain since July 2011. The flotation is also the largest IPO of a REIT (SOCIMI in Spain) ever registered in the EMEA region.
Ismael Clemente, executive chairman and CEO of Merlin Properties, commented: 'We have successfully executed the largest-ever stock market flotation of a REIT in Europe, which is clearly testament to the trust the market has placed in our business model.'
As part of the IPO, the company has agreed with the shareholders of Tree Inversiones Inmobiliarias, to acquire - subject to the completion of the IPO - the property group for €739.5 mln.
Tree Inversiones Inmobiliarias currently holds a portfolio of real estate assets (880 bank branches and 5 buildings) located throughout Spain and leased in their entirety to BBVA. This acquisition is expected to be executed in the coming days.