24/11/2014 – Bloomberg
As Bloomberg reported Saturday, Spanish REIT Hispania Activos Inmobiliarios, held by such prominent investors as Paulson & Co, submitted a bid of €150.6 million (0.49 €/share) for highly indebted Realia Business.
The deal includes an €800 million issue of new shares. Proceedings from their allocation will be intended for amortization of a syndicated loan from 2009 and reaching maturity in 2016.
Current stakeholders of Realia may take part in the capital hike and in case of any shortfall, creditors would swap their loans for Realia stock. Hispania has come to an agreement with lenders to buy 50% of the loan for €313 million, provided that the offer is accepted.
Realia was one of the few developers which survived the real estate bubble burst and subsequent deep recession. At the end of September, the firm’s debt posted €1.08 billion.
Bailed-out Bankia holds 25% in Realia and FCC (or Fomento de Construcciones y Contratas) possesses approximately 37%.
Original article: Bloomberg (by Sharon Smyth)
Summary: AURA REE
Source: AURA Real Estate Experts