The future Hotel W Madrid owned by the REIT
«We believe that this capital increase at this moment will allow us to: incorporate maximum quality assets at interesting prices generating attractive rates of return; complete the predicted acquisition plan and position Millenium as one of the 10 largest REITs by market capitalisation within the Spanish market and as one of the REITs which has a higher quality set of assets. We keep following our goal of sustainable growth to join the continuous market», revealed Javier Illán, Millenium Hotels’ president, in a note published at CNMV.
The REIT has already identified investment opportunities totalling around 960 million euro in the main Spanish and Portuguese target cities. Most of these acquisitions should be urban hotels in need of refurbishment to be repositioned or transformed, in line with the company’s strategy, which is to generate value by acquiring iconic buildings to transform them into 4 and 5 star hotels.
The capital increase process, which grants preference subscription rights to the current shareholders, will be carried out through the issuing of up to 30 million shares at 5 euro each. The subscription period is expected to be extended until the 19th of July. Afterwards, and until the 23rd of July, if the capital increase is not fully subscribed after the first round, new shares will be issued to the shareholders and other investors who have both fully exercised their subscription preference rights and requested additional shares. If the capital increase is not fully subscribed after the second round, a third round will take place no later than the 27th of July. It is expected for the new shares to be admitted for trading on the coming 30th of July.
Millenium currently has a portfolio constituted by nine assets located in prime areas of the main Spanish tourist cities, corresponding to a total of 444.5 million euro, including the CAPEX of approximately 130 million euro estimated for the investment plan.
Banco Santander, Citigroup and Banco Sabadell act as Global coordinators of the offer. Société Générale and JB Capital Markets as Bookrunners and RentaMarkets, Banca March, Renta 4 and GBS Finance as Co-leads. Uría Menéndez and Mayer Brown act as the company’s legal advisors for the offer and Allen & Overy as legal advisors for the banks.