This operation will have a mortgage guarantee over part of its assets destined for rental and real estate investments.
The syndicated loan is composed of two tranches, the first 100 million euro will be used to cancel the bilateral bank loans, which were for the most part, guaranteed through mortgages over the assets provided as guarantee for this new loan. The remaining 10 million euro will be used to finance the investment (capex) needed to transform a 7.200 sqm office building in Seville into a hotel.
The operation was subscribed with national financial instutions; Santander (Agent Bank), BBVA, Caixabank, Unicaja, Sabadell, Cajasur, Bankinter, Targobank, Novo Banco and Caja Rural de Granada. Garrigues advised the financial institutions and law firm Zurbarán abogados advised Grupo Insur.
Spokespersons from the group remark that «with this operation, the group reinforces the financial structure of its property activity, reduces costs, obtains the necessary financing for the capex, 10 million euro and makes available for the next five years 31.5 million euro to invest in the growth of this activity».