Spain: Real estate giant Blackstone buys Testa, the largest co. in sector

By Silvia Castro Betancourt 0 Comments NEWS, News

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

The real estate giant Blackstone is going to reorganize its rental housing business in Spain after buying Testa, the largest company in the sector. The first move will be to unify the technology of Testa and Fidere, its socimi which includes the 1,800 homes acquired from the Municipal Housing and Land Company (EMVS) of Madrid, as confirmed by various sources familiar with the Testa purchase process. In the medium term, the US company will study the convenience of merging both listed companies.

Blackstone recently agreed to acquire 50.01% of Testa from Merlin, Santander, and BBVA for 948 million euros. It is a socimi (listed company investment in the real estate market) with 10,600 homes for rent and a gross value of its portfolio of 2,600 million.

The US firm will take control of the company in December. At that time it will address a plan to unify the management of both companies, which control the portfolios of very similar assets since they are full buildings of leased housing. What the American company is looking for is synergies in the management and operationally operate both real estate with the same team.

As leader of the joint team, according to various sources, the fund manager will initially have the experience of the current CEO of Testa, the German Wolfgang Beck, signed this year by the socimi thanks to his experience in the German giant Vonovia and other companies of the sector dedicated to the lease. On the side of Fidere, Blackstone will take advantage of the trajectory of the president of the company, Juan Pablo Vera.

Fidere has 6,400 homes. It is known by the public for being the company that in 2013 bought the social housing to the EMVS to the town hall led by Ana Botella (PP). The consistory of Manuela Carmena (Now Madrid) since 2015 was set to reverse that sale, a challenge that has been frustrated so far.

Fidere has several subsidiaries, with different asset portfolios distributed mainly in municipalities in Madrid such as Las Rozas, Alcorcón, Torrejón de Ardoz, Móstoles or Tres Cantos.

An additional step in the integration would be the merger of both societies, but that possibility is not yet on the table since it could not occur if Blackstone previously does not control 100% of Testa. At the moment, Santander maintains 29.05% of the company, and Acciona another 20%.

The fund keeps the offer of purchase to these two partners. It is foreseeable that the financial institution comes out since it is not a strategic position. On the part of the company headed by José Manuel Entrecanales, he must assess whether he is interested in remaining in a company managed by the US fund.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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