La Finca Business Park
This is not a new process. It all started in June 2019, when Värde revealed its intent to sell its share of the Spanish REIT. The negotiation process advised by Deloitte took place throughout the year and in 2020 the first two interested companies became known: Drago Capital and Allianz Real Estate.
When the pandemic arrived in mid-March, Värde started trying to accelerate the process, since it predicted the trade market would be affected and it wanted to take advantage of the moment so there was still an opportunity to obtain gains with this operation. At the same time, another candidate entered the race: Starwood Capital. But this effort was not compensated, since Värde ended up suspending the process due to the pandemic.
Now there is the intention of reactivating this operation and there were two reasons that lead to it: first, there is great liquidity in the market and second, there is a clear interest from investors for less risky assets, as is the case of office assets. Sources contacted by newspaper Expansión revealed the American management company wants to take advantage of the combination of these two factors to conclude this operation which has been dragging on for almost 2 years.
It should be recalled that REIT La Finca reached the end of 2019 with a 10 building portfolio located in Madrid which is currently estimated at 790.4 million euro, according to the note released at the BME Growth (former Mercado Alternativo Bursátil) – where the REIT has been listed since September 2019.
The La Finca Business Park stands out within its portfolio as being the largest asset with 129 thousand sqm and 4.515 parking spots. Besides this, La Finca Global Assets has a building located at Calle Cardenal Marcelo Spínola – a business centre constituted by seven seven-floor buildings –; another complex at Martínez Villergas, formed by three buildings; and a further nine assets, all located in Madrid, at Calles Pez, Álvarez de Baena, Serrano, Almagro, Castelló, and plaza de José María Soler.
The funds managed by Värde Partners have, through Mansfield Invest Socimi, a 37.78% share of La Finca. 50.01% of the REIT is owned by Grupo LaFinca Promociones y Conciertos Inmobiliarios – company holding presided by Susana García-Cereceda. Her sister, Yolanda García-Cereceda, is the other reference shareholder with a share of 11%.