Blackstone will break the agreement of Hispania with Azora with a cost of €173M

Blackstone will break the agreement of Hispania with Azora with a cost of €173M


Blackstone acknowledges that the early termination of this contract will mean paying €173 million to Azora, a company that was also the developer of the socimi, the first to be launched in Spain.

The American fund reports that its intention is to entrust the management of the hotels, which will make it the first owner of this kind of establishments in the country, to one of its firms, HI Partners that purchased last year from Banco Sabadell.

The plans of Blackstone for Hispania are to take over 100% of the company, so that it stops trading on the stock exchange and is thus be excluded from the socimi regime.

Blackstone also plans to lift the “expiration date” that the current shareholders had placed on the socimi, which involves its sale or that of its assets before March 2020.

On the other hand, it will keep the hotels in the medium term, between three and seven years, through an unlisted subsidiary that will implement an "active management initiative" for these assets.

However, the fund does not rule out retake the block sale of the office buildings that Hispania had in operation when it launched the OPA, a total of 25 properties valued at some €600 million, "depending on market conditions and terms of the operation."

In terms of financing, Blackstone guarantees its takeover bid to the National Securities Market Commission (CNMV) with a BNP Paribas guarantee equivalent to the total of the operation (€1,589.6 million), although it will subsequently finance the purchase with "own resources coming from the different investment funds managed by the firm". 

Iberian Property logoIberinmo logo
Iberian Property is the best platform for investment in Spain & Portugal. Created for those who seek reliable information about players and deals happening in Iberia. Through updated database, reports, market indicators and daily news, we report “Who’s Who” in Iberian Real Estate!. Iberian Property is also proud to organize the most important international real estate investors’ meeting in Iberia - Portugal Real Estate Summit!