It will appoint two representatives on the board of the SOCIMI when it becomes its first shareholder
Criteria Caixa has agreed with Colonial to subscribe and pay out new shares for an effective amount of 622 million euros charged to monetary and non-monetary contributions and plans to achieve an approximate 17% stake in the capital of the Socimi.
In separate statements sent to the National Securities Market Commission (CNMV) this Thursday, both companies explain that the price per share resulting from the capital increase is equivalent to a pre-dividend price of 7.1 euros.
Criteria, the holding company of the La Caixa Banking Foundation, will disburse the non-monetary contributions through “certain residential and office properties owned, directly or indirectly” by InmoCaixa.
Specifically, it will make a monetary contribution of 350 million euros and, in addition, it will contribute 8 properties from the portfolio of its subsidiary InmoCaixa in different Spanish cities. In this way, the total amount of the transaction is valued at 622 million euros.
The InmoCaixa assets that will be part of this agreement are three office buildings located in Madrid and Barcelona, with a total of more than 20,000 square meters, and another five residential buildings under rental regime located in Madrid, Zaragoza and Málaga, which represent more than 600 homes.
With all this, 87,729,050 new shares will be issued – of the same class and series as those currently in circulation -, the unit nominal value will be 2.50 euros and the unit share premium will be 4.6 euros.
Criteria will have the right to receive a number of additional Colonial shares based on the payment of the dividend, the approval of which will be submitted to the ordinary general meeting, which will be held on June 12.
The La Caixa holding company argues that this operation will accelerate the strategy to reorient InmoCaixa’s real estate portfolio, currently valued at around 2.7 billion euros, and of which 56% is property rental (residential and offices).
NEW ‘ALPHA’ STRATEGY
The SOCIMI will call an extraordinary general meeting to submit the capital increase and the appointment of two directors at the proposal of Criteria to the approval of its shareholders, which will be done once the corresponding ‘due diligence’ is completed and the expert reports are obtained. .
However, the operation, approved unanimously by Colonial’s board of directors, has the support of shareholders represented on its board of directors.
Taking advantage of this boost to its activity, Colonial will launch a new ‘pipeline’ of developments with 385 million euros of investment in capex, within the new ‘Alpha X’ project, with a deleveraged profitability of more than 9%.
Specifically, it will transform four assets in Paris, Madrid and Barcelona that total more than 110,000 square meters and will generate additional annual income of 64 million euros. Colonial will also reduce the LTV debt ratio (ratio of debt to asset value) from 39.9% to 36.2%.