Archive for July, 2014

Spanish REIT completes purchase of bank and office portfolio for €740

Thursday, July 3rd, 2014

The Merlin Properties REIT has completed the purchase of Tree Inversiones Inmobiliarias (Tree Investment Properties), owner of 880 bank branches and five buildings, all occupied by Spanish bank BBVA on long term rental contracts. The amount of the transaction was €739.48 million.

This is the first tranche of assets acquired by the REIT, managed by the Spanish fund manager Magic Real Estate, which starred last Monday in the biggest Spanish stock market launch over the last three years.

Merlin already had an agreement with the shareholders of Tree Investments to complete this purchase, but the deal was conditional on the successful IPO of the REIT.

Tree Investments has until now been owned by Deutsche Bank, Banca March, Ares Capital Management and Europa Capital.

The lease of the bank branches extends to 2039 and in the case of the office buildings, until 2029.

Merlin issued a statement in which it said that the purchase of this portfolio is the “starting point” for “a series of investments”, which it will undertake over the next few months.

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