Part of Spanish Real Estate Company to Sell for $14B
- Mar 12, 2008
Immobiliaria Colonial, a Spanish property group, has committed to selling its rental assets to Investment Corp. of Dubai in a $14 billion deal, according to an article by Reuters yesterday. As per the terms of the agreement, ICD, the investment arm of the Government of Dubai, will pay cash for the segment of Barcelona-headquartered Colonial that involves office properties in Paris, Madrid and Barcelona. The remainder of the company, encompassing land and residential assets, will become a separate entity to be relisted.Colonial’s office portfolio, according to the company’s earnings report for 2007, encompasses nearly 10.8 million square feet of premier space with an average occupancy level of 96.7 percent. It is unclear in other reports whether or not the portion of the company ICD has proposed to purchase includes Colonial’s group of Class A retail centers, which it came into possession of as a result of its approximately $2.7 billion acquisition of Alcobendas, Spain-based real estate development concern Riofisa last August. As for Colonial’s residential and land business, the company achieved $815 million in revenues from sales last year. At the close of 2007, the land portfolio consisted of about 667 acres, 48 percent of which is in Andalusia, with the remaining located in spots between Madrid and the eastern portion of the Iberian Peninsula. The deal between IDC and Colonial, however, is not yet set in stone. In order for the transaction to reach fruition, Colonial must arrange for the refinancing of its debt of 9 billion euros within exactly one week.