Orion, AEW Said Final Bidders for Most of Spain’s Realia

Orion Capital Managers LP and AEW Europe have been chosen as the final bidders for a controlling stake in Realia Business SA, Spain’s second-largest publicly traded real estate company, two people with knowledge of the matter said.

Orion and AEW are trying to buy the 25 percent stake in Madrid-based Realia held by the Bankia Group and the 36.9 percent owned by Fomento de de Construcciones y Contratas, said the people, who asked not to be identified because the information is private. Realia has a market value of 332 million euros ($462 million).

Realia, like other Spanish property companies, has been crippled by the country’s worst recession in six decades and has reported combined losses of about 370 million euros in the past two years. More attractive to investors is Realia’s controlling stake in SIIC de Paris SA, a profitable French real estate investment trust with a market value of 774 million euros.

Bankia, the Spanish bank whose losses forced the government to seek a European bailout, and FCC, the builder controlled by Spanish billionaire Esther Koplowitz, are being advised by Goldman Sachs Group Inc.

Realia has net debt of 2.1 billion euros and the value of its portfolio as of Dec. 31 was 3.38 billion euros, according to the company’s full-year earnings statement. Realia’s shares have gained 43 percent this year.

Spokesmen for Bankia, FCC and Orion declined to comment. A spokeswoman for AEW also declined to comment.

Spain’s biggest publicly traded property company is Inmobiliaria Colonial SA.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE