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JPMorgan heads up deal to form €10bn property group

JPMorgan heads up deal to form €10bn property group

Real estate investment trust Colonial has made an offer to buy out rival Axiare

Investment bankers at JPMorgan are leading on a takeover that will create a Spanish property investment firm with €10bn in assets under management, in one of the country’s largest real estate deals this year.

The Wall Street bank has been named sole financial adviser to Colonial, a Spanish real estate investment trust, on an offer for all of the shares in rival firm Axiare that it does not already own. It is targeting around 70% of the firm.

At about $13.5bn according to data firm Dealogic, the value of deals targeting the real estate industry in Spain is already at its highest since 2008. The largest deal this year, at €5bn, saw Blackstone buy a real estate portfolio from Banco Popular after the bank’s purchase by Santander was agreed.

Colonial has been a shareholder in Axiare for more than a year and announced alongside the offer that it had already bought out a 9% stake previously held by Pelham Capital. Colonial is now making an offer of €18.50 per share for the 71.4% holding it does not have. In its statement, it said the total transaction value was €1.2bn.

The deal will add about €1.7bn in assets to Colonial’s existing portfolio, taking it to €10bn. By value, about 58% of the enlarged portfolio is located in Paris, with a further 27% in Madrid and 10% in Barcelona.

JPMorgan has funded the deal with bridge financing that includes stand-by equity underwriting, according to Colonial.

Source: https://www.fnlondon.com/articles/jpmorgan-heads-up-deal-to-form-e10bn-property-group-20171113

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