Aggregate Holdings, shareholder of VIC Properties, has just announced that it has reached an agreement to sell 100% of the company's shares. The transaction reaches an enterprise value of more than 670 million euros, according to a statement. The company was sold to a group led by several institutional investors and the current VIC management team.
The new investors, led by AlbaCore Capital Group, Mudrick Capital Management, L.P. and Owl Creek Asset Management, L.P., reveal their "long-term commitment" to the Portuguese residential market and show their confidence in the current management team to lead VIC, in what will be a new phase of growth.
This transaction, once completed, will provide VIC Properties with a significantly strengthened and more flexible financial structure. VIC, which is one of the largest real estate developers in the country, will receive a significant capital reinforcement, whose terms and amount are still to be agreed upon, in order to accelerate the development of its three major residential projects in Portugal: they contemplate Prata Riverside Village and Matinha, both located in the riverside area of Lisbon, and Pinheirinho, located between Comporta and Melides.
"The new shareholders of VIC Properties, and its management team, led by CEO João Cabaça, will continue to work closely with all relevant stakeholders in order to proceed with the promotion and development of its current and future residential projects, a clear commitment in responding to the pressing need for new housing in Portugal," reads a statement.
João Cabaça, CEO of VIC Properties, points out that VIC Properties starts today "a new and exciting chapter". The responsible reaffirms that "together with our new partners, and benefiting from a reinforced capital structure, we are highly excited to be able to invest in the continued development of some of the most prominent residential projects in the country, providing high quality, sustainable and modern housing, which is so necessary for those who live in Portugal".
For Jason Mudrick, Founder and Chief Investment Officer of Mudrick Capital Management, L.P., "this transaction will allow VIC Properties to accelerate its strategic ambitions by leveraging on the strong foundations already in place. Aggregate and the VIC management team have done a remarkable job in creating and developing the company from scratch, which makes us very excited to work with VIC in this new phase, supporting it in the promotion of its emblematic residential projects, thus contributing to new housing solutions in Portugal."
The transaction is subject to the usual conditions for a transaction of this nature, and is expected to be completed during the second quarter of 2023.