Veracruz Properties has under its sights several operations to expand its real estate portfolio, which is currently mainly composed of four shopping centres, several offices and two senior residences. It intends to acquire mainly senior residences and offices and for that it has decided to carry out loan operations, one of them with its own partners. The firm is negotiating a total financing of 20 million euro to carry out these new acquisitions.
The REIT justified this formula with being able to carry out the acquisitions quicker and with more nimbleness than it would if it had to follow all the necessary steps to carry out a capital increase operation. «Under the current market conditions, operations to buy these assets, especially the most attracting ones, are extremely volatile, with purchase operations that need to be executed very quickly».
This is why the company included in its next general meeting agenda’s an item which requests the shareholders’ permission to borrow from some of its partners: Agilant Advisors, Longan Group, Gold Chandelier Inc and Ecoday International Corp. The maximum maturity period for the subscribed loans will be 14 months and the maximum fixed interest rate for the operation will be around 4%.
Main assets
The new assets Veracruz has been analysing are located «in the Southern, Eastern and Central regions of Spain», according to the company itself. At the end of 2020 its assets were estimated at 150.62 million euro. The main ones were the Plaza Mayor de Xàtiva shopping centre, estimated at 44.12 million euro, and two office buildings within the Táctica de Paterna business park, estimated at 26.7 million euro, whose tenants included Mercadona.
The real estate company concluded 2020 with a 7.65 million euro business volume, around 2.4% less yoy. Its net result was 1.56 million euro, a 25% yoy drop.
