Hines and Grupo Lar announce $678 million takeover of Lar España

Hines and Grupo Lar announce acquisition of 90% of Lar España for 609 millionEP

North American background Hinesand a real estate investment manager Lar Group launched public takeover offer (takeover bid) Lar España Socimiowner of a portfolio of shopping centres. Hines and Grupo Lar, the last shareholder of Lar España with a 10% stake, are offering 8.1 euros per share, valuing the entire company at 677.91 million euros.

Absorption runs on all actions from Lar Spain, except those belonging to Grupo Lar and its president Miguel Pereda, who together represent 10.15%. The offer is being made through the joint stock company Helios RE, 62.5% of which is owned by Hines and 37.5% by Grupo Lar. In addition, the transaction is considered friendly, since one of the bidders is on the board of directors of Lar España, is not seeking to delist the company from the stock market, and the price to be paid represents a premium of 16% over the last quoted price and 25% of the weighted average price over the last six months.

The price that Hines and Grupo Lar will pay if the operation is successful is A 20% reduction in the value of a company’s assets, net of its debt. (net worth), which is just over 900 million at the end of the 2023 financial year. To submit the takeover bid, the consortium consulted with investment banks Morgan Stanley and AZ Capital on the financial side, and Freshfields Bruckhaus Deringer and Garrigues on the legal side.

Lar España – SOCIMI (Registered Real Estate Investment Company). owner of a portfolio of shopping centers with an area of ​​half a million square meters throughout Spain. The company’s main shareholder is the South African fund Vukile, which is also the first shareholder in Castellana Properties (another SOCIMI specializing in shopping centers). Vukile is adding 25.5% of the shares after buying 21% two years ago from another Pimco fund. It is currently unknown whether this offer is satisfactory for the fund, which has always been surrounded by rumors that it intends to submit its own takeover bid, but this has never materialized.

Whether or not you accept Vukile’s price, the operation is led by Hines and Grupo Lar does not stipulate a minimum percentage of success for its prosperity. They only want shareholder control of the listed company. Shareholders such as Brandes Investment Partners, representing 10% of the capital, have already signed in writing that they will attend the takeover bid, while others, such as Eurosazor (the firm of businessmen Rafael Ortiz and Fernando Fernandez Tapias), will reinvest.

Objective: to contribute to the development of Lar España.

As shown in the brochure sent to the National Securities Market Commission, The goal of Hines and Grupo Lar is to contribute to the growth of Lar España.If the takeover bid is successful and is successfully completed, both partners will set a period imprisonment for a period of 5 years, during which they will not be able to sell the shares they have acquired. In turn, the property rights of Grupo Lar and Miguel Pereda, more than 10% of the company, will be transferred to the consortium.

One day, Hines and the Lar Group control the company will increase their debt to 60% of the value of their assets to stimulate new purchases. At the end of 2023, Lar España owned real estate worth €1,313 million, located in nine shopping centers and three retail parks. The company’s debt amounted to just over €400 million, which corresponds to the new capital that it will invest in acquisitions in the coming months.