Soros, Paulson Backed Hispania Activos Mulls Realia Takeover

Hispania Activos Inmobiliarios SAU (BME:HIS), a Spanish real estate investment trust (REIT) backed by Paulson & Co and Soros Fund Management is considering to submit a proposal to take over Realia Business SA (BME:RLIA), according to a regulatory filing, and as first reported by Sharon Smyth of Bloomberg News.

Paulson & Co owns 18.4% while Soros Fund Management owns 16.7% of the outstanding shares of Hispania Activos Inmobiliarios SAU (BME:HIS).  The Spanish REIT is managed by Azora, an independent asset manager with €2.8 billion in assets under management (AUM).

The hedge funds acquired their position in Hispania Activos Inmobiliarios SAU (BME:HIS) earlier this year.

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Hispania Activos Inmobiliarios


Hispania Activos to offer €0.49 per share for Realia Business

The Spanish REIT plans to offer €0.49 or $0.61 per share to the shareholders of Realia Business SA (BME:RLIA) who owns at least 55% stake, according to its regulatory filing.

The Bankia Group and Fomento de Construcciones y Contratas (FCC) owns  25% and 37%  stake in  Realia Business SA (BME:RLIA) respectively.  Earlier this year, Bankia and FCC tried to sell their stake in the property developer, but the companies experienced difficulty finding investors. Realia Business has a net debt of €1.08 billion.

Hispania Activos Inmobiliarios SAU (BME:HIS) said it already conducted negotiations with the creditors of Realia Business SA (BME:RLIA) regarding a capital increase to be able to pay some of its debt.

Realia Business SA (BME:RLIA) is among the property developers hurt by the recession in Spain. The company posted €383 million in cumulative losses since the beginning of 2012.  It owns 30 leased offices and eight shopping malls in Spain.

Stock movement

The stock price of Realia Business SA (BME:RLIA) declined more than 25% to €0.79 while the shares of Hispania Activos Inmobiliarios SAU (BME:HIS) were trading €9.92 per share in Spain on Thursday.

Spain’s market regulator suspended the trading of the shares of Hispania Activos Inmobiliarios SAU (BME:HIS) today, according to Reuters. No further details were mentioned regarding the reason of the suspension.