IBEX-35 | Merlin Properties is preparing to begin raising capital by 1 billion before the end of the year.
Merlin Nepertiz begins a “mega-operation”. The Ibex-35-listed real estate company is preparing a capital increase of up to €1 billion, which it hopes to close before the end of the year. The intention of the company, led by Ismael Clemente and Miguel Ollero, is to include a partner in the company’s shareholding, which will hold a share of approximately 10% to 20%.
The reason for this operation is Merlin needs funds to continue investing in data centers, known in industry jargon as “data centers.” The company financed with its own funds, mainly from those it received from the sale of a portfolio of BBVA bank branches two years ago, the construction of this type of property, with which it plans to have 60 megawatts (MW) available in the coming months. ) installed.
Now the real estate company wants increase its power to 180 MW. To make this happen they need about 2 billionhalf of this will be paid through the above-mentioned capital increase, and the remaining 1,000 million through debt, through syndicated bank loans or through the issuance of bonds.
To do this, Clemente and Ollero intend to conduct a unique operation in which capital is raised by a single investor, rather than by free subscriptions and many small investors. This investor is likely any foreign investment fund, institution or sovereign wealth fund, who may be vying for a seat on the Merlin Board of Directors. The company has already saved preliminary contacts with several investment bankerswith the intention of attracting investors and found more interest in the market than expected.
Merlin’s management team enjoys support from, in addition to the Board of Directors, Meeting of shareholderswhich at its last meeting authorized Merlin to increase the share capital over the next five years by cash contributions up to a maximum of 50% of the share capital or without the right of first refusal up to 20% of the authorized capital. The latter possibility is being considered by the management of SOCIMI (a registered real estate investment company).
20% of Merlin’s share capital is equivalent to 93.9 million shares, which, at a price of nine euros per share similar to its current price, gives the position a market value of around €845 million. However, the intention is add bonusat least at the current trading price, although slight discount to net asset value subtracting your debt, which is about 15 euros.
In an interview with ACTIVOS, the economic vertical of Prensa Ibérica, CEO Ismael Clemente gave some hints about his growth plans in data centers: “There is no other European listed company focused on data centers Thus, anyone who wants to deal with this sector sees opportunities in Merlin. This is a very capital-intensive segment with a huge technology barrier, and we have the ability to develop and exploit it. To speed up the execution of the plan and take advantage of the privileged position we have It is necessary to have additional capital, which can come in different ways.All of them are currently being analyzed.”
Merlin results in 2023
In 2023, Merlin Properties recorded rental income of €475 million, up 5% on 2022, while its operating profit fell 2.1% to €284 million due to the sale of the Tree portfolio, a portfolio of branches , leased to BBVA. Due to rising interest rates and their correlation with the value of real estate, the company was forced adjust the value of your portfolio by almost 336 million euros, resulting in losses for the year amounting to 83.5 million euros.
Despite the lack of profit due to valuation adjustments, Clemente is pleased with the company’s performance over the past twelve months: “It was a year bordering on outstanding achievements, even better than 2022 at the operational level.“His office portfolio remains occupied at 92.5%, the same percentage as a year earlier, and increases his income by 12 million. As for the logistics warehouses, they are almost fully occupied, at 99%, and have already raised rents Finally, shopping malls, which Ismael Clemente called a “star asset in terms of performance”, thanks to good household consumption performance, generated 126 million in revenue, slightly higher than in 2022, thanks to an increase of 1.22%. employment.
During the past year Marlin opened its first three data centers in Madrid, Barcelona and Alava.installed capacity 9 MW, after invest 306 million. The real estate company is already working on renovating these sites to be able to provide more electricity and collect the necessary technological materials, although they admit that they have problems with electricity supply, especially in Madrid.