TPG to acquire 75% of housing REIT from Spain's bad bank

Témpore Properties, a listed company established by Spain’s ‘bad bank’ Sareb in 2017, is to be acquired by TPG Real Estate Partners.

Témpore was created as a Socimi, a Spanish real estate investment trust, to offload rental housing assets taken on by Sareb following the global financial crisis.

TPG will acquire 75% of Témpore’s shares, which are listed on Madrid’s Alternative Stock Exchange (MAB), and Sareb will retain a 24.12% stake.

The private equity firm will pay an indicative price of €12.17 per share, less the value of the next dividend payment to be approved at Témpore’s extraordinary general meeting on 5 August.

The price indicates a value of all the shares of the company of €329.5m, 10% above its market capitalisation on Thursday and 17% higher than its original IPO value.

TPG will extend its offer under the same conditions to existing minority shareholders, which represent 0.88% of Témpore.

Témpore manages a portfolio of more than 2,200 residential rental units located in major cities across Spain, including Madrid, Barcelona and Valencia.

The company was listed in March 2018 and is one of the largest residential Socimis in Spain.

Under its new shareholder structure, Témpore will remain listed on the MAB and continue to be led by CEO Nicolás Díaz Saldaña from its headquarters in Madrid.

TPG will assume four seats on Témpore’s board of directors with the appointment of Michael Abel, Matthew Coleman, Daniel Valenzano and Jonathan Farrell to be approved at the extraordinary general meeting.

“With Témpore, we saw a unique opportunity to partner with Sareb to effectively manage, enhance, and grow one of the leading residential Socimis in Spain,” said Abel, partner at TPG Real Estate.