First big move of the year in real estate with Neinor Homes as the protagonist. The developer has just closed the absorption of Quabit in an operation that will be implemented through an exchange of shares that places the valuation of the company at around 60 million euros. As a result, Neinor Homes will integrate joint assets by worth around € 2 billion and it will continue to be listed on the continuous market, as confirmed by the company in a statement sent to the National Securities Market Commission (CNMV) this Monday.
The merger process will be approved by the General Shareholders’ Meetings of both companies, scheduled for the end of March or the beginning of April, after which Neinor Homes will add a joint floor bank with capacity to build more than 16,000 homes. In addition, Neinor Homes is consolidated as the largest national developer and strengthens its presence in the residential markets of the Centro area (Madrid and Corredor del Henares) and Málaga.
The current shareholders of Neinor Homes will control 93% of the resulting company, “while the class A shareholders of Quabit will be given a 7% stake, through a share exchange whereby the class A shareholders of Quabit Inmobiliaria will receive one Neinor Homes share for every 25.9650 Class A Quabit shares [las cotizadas]”, explains the company. In addition, a debt restructuring which is already underway.
The Group’s Board of Directors will not undergo changes compared to the one currently made up of Neinor Homes, and the company will continue to be led by the current CEO of Neinor Homes, Borja García-Egotxeaga, and the Deputy CEO and Chief Financial Officer, Jordi ArgemÃ, while the current CEO and President of Quabit, Felix Abánades, will remain linked to management as senior advisor.
With this operation, Neinor Homes anticipates the consolidation opportunities offered by the sector. By merging with Quabit, you will get a floor bench for 16,000 units, and it will take advantage of the complementary options of both companies, which share the same focal points, betting on the 6 main residential markets and with the highest volume of demand (Central, East, Levante, North, Eastern Andalusia and Western Andalusia). In this sense, the Quabit land bank stands out for its weight with respect to the Centro-Madrid area and Corredor del Henares (56%) and Málaga (16%), Neinor’s two main areas of activity.
Likewise, the merger will allow Neinor Homes to expand its capacity to penetrate the market, adding to its portfolio a new type of product with new affordable housing segments to meet a greater part of the demand, while incorporating capacity Quabit constructive with the intention of improving efficiency and costs.
Neinor Homes has counted on the operation with the financial advice of JP Morgan, who has led the process, and with Deutsche Bank, both entities also being in charge of financing, as well as with UrÃa Menà ndez and PwC in the legal aspects, while on the part of Quabit Arcano and Cuatrecasas have acted.
“With the absorption of Quabit we become the leader in residential development in Spain, with a situation of financial strength and a greater size and presence that allows us to face the current challenges that the market offers us in a better position and reinforces us in the commitment to offer the best product to our clients “, has indicated Borja García-Egotxeaga, CEO of Neinor Homes.
The deputy CEO, Jordi ArgemÃ, for his part, considers that “this operation confirms that Neinor has not only been able to lead the operating results of the last few years in the sector, but also to lead this consolidation process. We are very satisfied and convinced that it will generate value for our shareholders “.
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