Merlin to buy less “in a more selective way”

Merlin to buy less  “in a more selective way”

“We have designed an ambitious plan of reforms for our portfolio in the next five years, in which we aim to improve the rents of the properties and first and foremost the challenge of increasing the occupation rate of the assets from Metrovacesa”, he assured the audience. In press statements, Clemente set out that, of the 200 million set apart for reforms, 100 would be for offices and the other hundred for shopping centres.

The Board of Shareholders of Merlin Properties today approved the operation and results of the 2016 financial year, as well as the dividend to shareholders, also attributed to the financial year, a total of 160 million euros. The company obtained a resounding majority from the shareholders in this key year for management, especially as a result of the integration of Metrovacesa.

In his speech to the shareholders, Javier García Carranza, President of the Administration Board, stressed that, “The integration of Metrovacesa has brought much value into Merlin. Firstly, we are now competing in the league of the great European REITs in the top 10 of the sector, with all the advantages this brings for our shareholders in terms of visibility, value liquidity and capacity for influence, for investors, tenants and authorities.” greatly enhanced the value of Merlin. He also stressed that 2016 was very intense in the rotation of assets and the optimisation of the balance structure of the company. He equally thanked the shareholders for their support enabling Merlin to achieve these objectives.

Ismael Clemente pointed out,  “The year 2016 stands out in terms of profitability for the shareholder, at 17.2%, between growth in net asset value per share, and the dividend. In business terms, the merger with Metrovacesa was the highlight, reinforcing Merlin’s leadership in the Spanish market. Value has been generated right from the start, with enormous potential to continue in the future.” Also, during his speech, Ismael Clemente highlighted the maximum cost efficiency which the company implanted from the beginning, recalling that, “We have a cost structure based on a mathematical formula: the maximum annual cost structure is greatest between 0.6% of the NAV and 6% of rents. This is how Merlin works for the shareholders. Even more important, is what this ratio represents, in that we are more efficient than all the rest, both locally and internationally.”


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