Colonial sold assets for €617M in 2020

Colonial sold assets for €617M in 2020

Building 9 Percier, Paris - recently sold by by Colonial

Colonial announced the closing of a new divestment plan as part of its asset rotation and of balance improvement. In total, the assets were sold by the company in 2020 for more than 617 million euro.

Colonial also concluded this week the sale of building 9 Percier, located in Paris, to German fund Deka Immobilien for a total 143.5 million euro. The building had been acquired from Eurosic for a total 67.4 million euro in 2015. The company also sold shopping centre les Gavarres, located in Tarragona, to Bauhaus, which has one of its stores there.

To these should be added the sales carried out during the 1st quarter of 2020, such as that of the 14.000 sqm building located at Avenida Bruselas 68, fully leased to MásMóvil in 2019; the sale of the 5.500 sqm Parisian building 112 Wagram for 120.5 million euro to SFL, Colonial’s French subsidiary in 2010, for half its current price.

Thus, Colonial concluded its Alpha V divestment plan, carried out throughout 2020 and the beginning of 2021, developing sales of buildings which had ended their valuation cycle within the company or which were no longer strategic.

This plan will also allow the company to continue improving its balance, placing its LTV (Loan to value ratio) at around 35%, as well as improving its liquidity, which already surpasses, by a large margin, 2.5 billion euro.

All these divestments generated double digit gains on average per transaction. The enormous interest they aroused, proven by these gains, showed once again Colonial’s ability to reposition itself and increase the value of its buildings.

68% of the assets divested last year were located in Madrid and Barcelona, whereas the remaining 32% were located in Paris. Of all 617 million euro generated by the divestments, non-strategic assets sold during the last quarter of the year (and the first weeks of 2021 in some cases) represented 413 million euro, with a 13% gain over their value, to which were added the 200 million euro generated by divestments earlier in the same year of 2020. Those earlier divestments carried out in 2020 and which are included on Alpha V were the assets located at Plaça Europa and Berlin in Barcelona, Hotel Mojácar and the second stage of the sale of Prologis’ logistic portfolio.

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!