The REIT paid 168.89 million euro in cash, which places the society’s total value at more than 1.100 million euro. Both parties informed the CNMV (Stock Market National Commission) of this decision.
San José has shared the ownership of this operation with BBVA since it started in the 90’s. The bank maintained negotiations with Merlin for the sale of its share, around 76%, but the companies did not reach a final agreement. This purchase allows Merlin to enter the so called Operation Chamartín.
Following this operation, three companies lead the DCN. BBVA with around 76% of the capital, Merlin with around 14% and San José with around 10%. It should be remarked that BBVA retains the right of first refusal and withdrawal. This means that the bank can acquire the 14.4% San José sold under the same terms agreed with Merlin.
Unlike the deal between Merlin and San José, conversations with BBVA were based on a swap of all the bank’s real estate assets included in the operation for a block of shares from the REIT.
This project, which will include the construction of more than 10.000 dwellings and provide Madrid with a new financial district, might take as long as 20 more years to be concluded.
Merlin’s entry into Operación Chamartín represents the entry of the largest real estate company in Spain, with more than 12.000 million euro in rented properties.