Merlin and Metrovacesa create a new leader of the rental business in Spain – Spain Investing.com

By Robert Hetz

MADRID (Reuters) – Merlin said Tuesday it has signed an integration agreement with Metrovacesa and its major shareholders, Banco Santander (MC :), BBVA (MC and Popular with the aim of creating the largest Spanish real estate group of rental assets.

the activity will focus on two companies, one with residential assets and another with heritage with sets of 4,927 million euros net assets (according to its NAV) that will generate annual gross income of 450 million euros.

for the constitution of new real estate leader, Metrovacesa will bring all its tertiary and residential assets valued at about 2,110 million euros. In return, shareholders of Metrovacesa – the three banks -. Get shares in the Merlin group and its subsidiary

Metrovacesa The property business, valued at 1,672 million euros, will be integrated into the own Marline. In return for the shareholders of Metrovacesa will get the 31.237 percent stake in Merlin

The residential heritage of Metrovacesa, valued at 441 million euros, will split in favor subsidiary Merlin recently acquired Testa (MC.: ) Residential. After integration, Metrovacesa shareholders shall hold 65.8 percent of the new residential Testa.

Finally, the non-strategic assets of Metrovacesa (soil and construction sites), valued at 326 million euros, to a new company that will take the shareholders of Metrovacesa be provided.

Merlin said integration operations require the green light by competition authorities.

in a note separate, Santander, the main shareholder of Metrovacesa, said that after completion of the integration operations, would be 21.95 percent of Merlin and 46.21 percent of Testa Residencial.

the current president executive of Merlin, Ismael Clemente, will be executive vice president and CEO while Rodrigo Echenique, bank Santander, will be non-executive chairman of the board.

Santander, BBVA and Popular have undertaken not to sell shares of Merlin for six months following the registration of the operation and Merlin will have right of first refusal on sales of shares exceeding 10 percent of the company.

Metrovacesa was advised by Goldman Sachs (NYSE while that Morgan Stanley (NYSE has advised Merlin.

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