black stone facing a breakthrough year For your rental housing investment in Spain, with substantial refinancing of your debt. The North American manager has many subsidiaries in our country, some of which have already been dissolved and channeled the purchase of rental apartments: Testa, Fidere, Anticipa, Aliseda (50% with Banco Santander), Torbel or Euripo.
The two main heroes of this 2023 Head and FidereHE have to refinance a debt of more than 2,000 million euros. In the real estate industry, the plight of both subsidiaries is discussed, following the sharp rise in interest rates and the cost of debt, coupled with the financial storm in the US and Europe with the bailout of Silicon Valley. Bank, First Republic Bank and Credit Suisse.
First ‘match ball’Blackstone saved him. Fidere received 440 million euros from Crédit Agricole, BNP Paribas and CitiBank. As detailed in 174 pages sent to the regulator, on March 17 the North American fund company and its creditors reached an agreement to refinance the debt, which includes a loan and line of credit of 513 million and 18 million euros respectively, signed in April 2018. 386 million remained on hold.
On April 28, the aforementioned banks formalized an agreement. 426 million TL green syndication loan granted to Fidere, despite receiving only 14, in addition to the additional 25 million slices. In a related incident, Fidere reported that the loan term is two years and can be extended up to five years. While the depreciation will be made at once at the end of the maturity, interest is calculated as a type. Euribor +2.5%will be met quarterly on the same terms as before.
How many floors does the Fidere have?
The creation of Fidere is linked to one of the most controversial real estate investments in Spain’s real estate history: Sale of 1,860 flats owned by Madrid Municipal Housing and Land Company (EMVS) to Blackstone in 2013 for 128.5m euros, while Ana Botella was mayor. The publicly traded company had to divest its assets after the bubble burst and was in over-indebtedness estimated at 626.2m euros. The operation, surrounded by controversy and going through a lengthy judicial process, was upheld by the Madrid State Court last year and acquitted the two people involved, Blackstone’s representative and the former CEO of EMVS.
Following the purchase from EMVS, they formalized new acquisitions: 436 homes from Sareb in Madrid, Guadalajara and Barcelona; 508 officially protected houses in Sareb in Getafe and Móstoles, or 557 houses in Torrejón de Ardoz and Paracuellos de Jarama, controlled by Banco Popular.
Fidere was listed on the former Alternative Exchange (now BME Growth) in 2015. Portfolio of 2,688 residences, 2,986 car parks, 2,222 warehouses and 48 stores; as detailed in the brochure for entry to trade. Of the 23 zonings they owned, seven had flats (1,147 houses) with lease agreements. At that time, the portfolio occupancy rate was 76%.
Years later, in 2019, the first sales began: two residential buildings purchased by Vivenio, owned by APG and Catalan Renta Corporación. During the last two exercises, Fidere has made numerous divestments to return assets and complete its investment.. Malaga (25 houses), Cádiz (15), Madrid (13), Barcelona (9), Torrejón (7), Majadahonda (7), Tarragona (5), Murcia (3) and Valencia (2) in 2022. 106 properties 15.39 in the previous year, 2021 in Madrid (26), Cádiz (22), Torrejón de Ardoz (16), Murcia (14), Barcelona (12), Málaga (7), Tarragona ( 4) Sold for millions. ), Colmenar Viejo (2), Majadahonda (1), Valencia (1) and Alcobendas (1).
Right now Its portfolio is about 5,000 properties. And 409,476 square meters with an occupancy rate of 90.6%. Most of the houses are located in the Community of Madrid, although a small part of the portfolio is in Castilla La-Mancha, Andalusia, Valencian Community and Catalonia.
Next step: Refinance Testa
For Blackstone, leaving Fidere without short-term debt maturities was a success, but Must face a second, even more important milestone by refinancing Testa Residencial. Until 2015, Testa was Sacyr’s historic equity subsidiary, selling it to Merlin Properties for 1,800 million. Following this operation, Merlin integrated the assets of Metrovacesa and Acciona until it reached a portfolio of 10,615 residential units, mostly free housing.
After these mergers, Testa became part of Banco Santander, BBVA, Acciona and Merlin. In 2018, real estate and financial institutions transferred their shares to Blackstone, which controls a 50.01% stake in a company with assets worth €2,675 million. A year later, in April 2019, the North American executive completed the complete acquisition of the company.
Testa in February 2018, You need to refinance which will expire next February 2024. Until the end of the last financial year, company’s debts 1.680 million Euro as confirmed by annual accounts submitted to the regulator.
Certainly, the Blackstone subsidiary’s credits are not in good standing. As the company admits, failed to meet the demands of its creditors and is in a difficult situation to finance cash trapthat is, “he must retain all of the income he receives from the sale of a portion of his real estate assets.”
In order to make new loan agreements more advantageous throughout 2022, TSignificant divestments worth 217m euros. The most important of these was the house known as ‘Manzana Castellana’, which encompasses about 250 houses at number 200 of the famous Madrid artery. It also includes the sale and purchase by individuals of a 90-storey building in Galicia and 147 houses throughout Spain.
At Blackstone, they are confident they can refinance Testa in the coming months. “Fidere and Testa continue with a very solid job and the fundamentals of the industry continue to be good.”