Testa approves integration of home rental portfolio of Acciona

Testa approves integration of home rental portfolio of Acciona

According to Expansión, Testa will approve by 14 September, in an extraordinary meeting of shareholders, the non-cash deal of increase of capital. On the basis of the transaction agreed last July, Acciona will exchange its portfolio of 1,058 rental homes for Testa shares equivalent to 21% of its capital, and evaluated in the amount of €341 million.

This way, the group headed by José Manuel Entrecanales will then become the company’s third largest shareholder behind Santander, first shareholder with 38.8%, and BBVA (26.9%).  Merlin will decrease its participation and keep the remaining 12.7%.

The shareholders meeting will approve the admission of Acciona members’ to Testa Board.

Once this merger is concluded, the new Testa Residencial will have a portfolio of 9,041 homes, for private renting, in 118 buildings.  More than half of them (51%) are in Madrid.

The company will generate revenues in excess of €70 million per year, due to the rental of this assets portfolio, valued at about €1,816 million.

The operation gives new impetus to the company’s growth strategy, which does not rule out going public, less than a year after its adoption in October 2016.

Testa Residencial is the result of last year’s merger of Merlin Properties with the equity arm of Metrovacesa, in a deal in which the companies agreed to segregate the housing portfolio into a specific company in Socimi regime.

The company approached a first growth operation, at the beginning of this year, when it’s three shareholder banks (Santander, Popular and BBVA) transferred a portfolio of 3,300 homes to the socimi, also through a non-cash capital increase.

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