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Merlin and Metrovacesa to combine into €9.3b Spanish REIT

by Andrea Waitrovich

Merlin Properties announced it has agreed to merge with Metrovacesa.

Once the integration is completed, the new REIT will reach a pro forma GAV of €9.3 billion ($10.5 billion), NAV of €4.9 billion ($5.5 billion) and annual gross rents of €450 million ($509 million).

The resulting entity will own the single largest diversified property portfolio in Spain with greater exposure to Madrid and Barcelona office CBD and shopping centers.

Simultaneously, Metrovacesa will combine its multifamily rented residential portfolio with Testa Residencial, a subsidiary of MERLIN with more than 4,700 units under management, a pro forma GAV of €980 million ($1.12 billion), NAV of €617 million ($698 million) and annual gross rents of €35 million ($40 million), which could grow through further contributions.

The merger will consist of several stages.

Metrovacesa will spin-off into three business lines: commercial propert

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