The consortium formed by the Real Estate fund Hines European Real Estate Partners III a fund managed by Hines Interests Limited Partnership and Grupo Lar Inversiones Inmobiliarias, S.A., announce a Voluntary Cash Tender Offer to acquire an remaining 89.85% stake in Lar España Real Estate SOCIMI, S.A. for approximately ?610 million.
July 11, 2024
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The consortium formed by the Real Estate fund Hines European Real Estate Partners III a fund managed by Hines Interests Limited Partnership and Grupo Lar Inversiones Inmobiliarias, S.A., announce a Voluntary Cash Tender Offer to acquire an remaining 89.85% stake in Lar España Real Estate SOCIMI, S.A. (BME:LRE) for approximately ?610 million on July 12, 2024. The consideration offered to Lar España?s shareholders consists of ?8.10 per share, paid in cash, which implies valuing Lar España?s share capital at approximately ?678 million. The Offer price implies a premium of 16% over the closing share price on the day before the Announcement, 17% premium over last 1-month VWAP and 25% premium over last 6-month VWAP adjusted by dividend. The Offer is addressed to effectively 89.85% of the ordinary shares of Lar España, excluding the shares owned by Grupo Lar and Miguel Pereda Espeso (shareholder and Executive Chairman of Grupo Lar), which will contribute their shares to the Offeror after settlement. The Offer is conditional on reaching a minimum level of acceptance that allows the Offeror to gain control, assets perimeter remaining unchanged and no material changes in the net debt/cash position taking the latest publicly available quarterly report as of Q1- 2024. The Consortium will fund the Offer with a combination of equity and external debt financing fully underwritten by reputable banks. The intention of the parties is to further optimize the capital structure of Lar España and to increase leverage to c.60% LTV.
Morgan Stanley and AZ Capital are acting as financial advisors and Freshfields Bruckhaus Deringer and Garrigues as legal advisors to the Consortium.
Lar Espana Real Estate SOCIMI SA is a Spain-based company primarily engaged in the operation of retail Real Estate Investment Trusts (REITs). The Company specializes in acquiring, managing and renting real estate assets within the Spanish market. Its business activities are divided into three segments: Shopping Centers, Offices, as well as Logistics. The Shopping Centers area is responsible for operation of a number of shopping malls, namely Txingudi, Las Huertas, Albacenter, Anec Blau, Hiper Albacenter, and Nuevo Alisal, among others. The Offices segment invests in office properties, such as Arturo Soria, Cardenal Marcelo Spinola, Egeo and Eloy Gonzalo. The Logistics division focuses on managing logistics warehouses, including Alovera I and Alovera II. The Company also owns a plot for residential properties development. It is a parent of a number of entities, such as Lar Espana Inversion Logistica SA, Gran Via Centrum Holdings SAU, Global Noctua and Puerta Maritima Ondara.
The consortium formed by the Real Estate fund Hines European Real Estate Partners III a fund managed by Hines Interests Limited Partnership and Grupo Lar Inversiones Inmobiliarias, S.A., announce a Voluntary Cash Tender Offer to acquire an remaining 89.85% stake in Lar España Real Estate SOCIMI, S.A. for approximately ?610 million.