On the occasion of call of the Annual General Shareholders’ Meeting scheduled for 28 June, Colonial has submitted the proposal of agreements and the execution of an investment plan for more than €400m. These investments will be materialized in 4 different projects: 3 of them in Spain and 1 in France. In addition, part of this investment will be financed by the issuance of new Colonial shares, which will result in a capital increase of more than €260m.
Purchase of building in calle José Abascal, 45 (Madrid)
Colonial has reached an agreement for the purchase of the building located in calle José Abascal, 45. This acquisition will be settled in the next weeks only subject to the release of charges in the “Registro”. It is an architecturally unique building, rented to top tier companies, with a surface area of more than 5,300 sq m. The investment amounts to €35m, and confirms the positioning of Colonial as one of the leaders in prime assets in the Madrid market.
Purchase of a project in 22@ (Barcelona)
Colonial has signed the acquisition of a project for the construction of an office building in calle Ciutat de Granada in Barcelona, in the 22@ district. It is a project strategically located in the most valued area in the district that will enable the construction of a 17-storey building with a surface area of more than 24,000 sq m. The architecturally unique building will be one of the first office buildings with the LEED Platinum certification in Barcelona. The total amount of the investment will be €77m.
Purchase of 4.4% of SFL
Colonial has reached an agreement with the Reig Group for the purchase of 4.4% of SFL. With this acquisition, Colonial’s stake in its subsidiary SFL will increase up to 57.5%. The acquisition will be carried out through the payment of €51m in cash and the issuance of 90.8m new Colonial shares. This agreement is subject to approval at the next Annual General Shareholders’ Meeting scheduled for 28 June. With this transaction, Colonial will reinforce its presence and positioning in SFL, a company that has demonstrated its leadership in value creation in the Parisian market and that has an unparalleled asset portfolio in the French capital and includes a long-term oriented shareholder at Colonial.
Purchase of two office buildings in Madrid
Colonial has reached an agreement with the Finaccess Group for the purchase of a portfolio which includes the building located in calle Santa Hortensia, 26-28 and the building located in calle Serrano, 73. The transaction has been valued at €202m, and the acquisition will take place through the issuance of 288.6m new Colonial shares. The execution of this investment agreement is subject to the fulfilment of certain conditions, among others, its approval at the next Annual General Shareholders’ Meeting scheduled for 28 June. The execution of the transaction will enable the incorporation of the Finaccess Group as a new significant shareholder of the company.
The building located in calle Santa Hortensia, 26-28, with a surface area of 47,000 sq m, is one of the 7 largest office buildings in Madrid. Found on a strategically-located parcel of 12,500 sq m, it is a unique building in its characteristics, and fits perfectly into Colonial’s strategy to develop the best portfolio of prime buildings in Spain. The building located on calle Serrano, 73, with a surface area of 4,200 sq m, is one of the office buildings in Madrid with the highest recognition due to its extraordinary location and quality.
Capital increase of more than €260m
The execution of the transactions described above (the purchase of 4.4% of SFL in Paris and the purchase of two office buildings in Madrid) are subject to the fulfilment of certain conditions and their approval at the Annual General Shareholders’ Meeting. This will result in a capital increase of 379.4m shares, with an approximate value of €265m euros, based on the valuations provided by independent experts. This transaction will raise the market capitalization to over €2,300m.
Source: Property Magazine