Asentia changes course and heads towards value generationIts property development activities will kick off with developing its land.
- Its current shareholders have showed their commitment to the company by converting over 80% of its debt into equity.
- The company's debt has dropped from EUR 1 billion to EUR 160 million.
- Asentia is to develop its land, which currently consists of over 1,500,000 m2, with EUR 200 million expected to be invested over the next six years.
- The new Asentia has become separate from its former shareholder Colonial, the real estate company.
Madrid, 9 June 2015. Asentia's debt refinancing agreement was signed in Madrid on 28 May. This represents a milestone in the history of the property company, as from now it will become a developer, focusing on developing its own land, and a third-party property assets manager.
The decision was taken by the company's creditors and new shareholders - Davidson Kempner, Crédit Agricole CIB, Colony Capital, Brookfield, ING Real Estate and Merrill Lynch International -, who are committed to transforming Asentia into a company capable of rendering the assets in its portfolio profitable and have provided it with the resources to do so.
This new stage is defined by five key aspects:
Firstly, Asentia has been refinanced by its new shareholders under highly favourable conditions, given that its debt of nearly EUR 1 billion prior to the agreement has been reduced to EUR 160 million. Secondly, ample time has been allowed for the new financing, which is due to mature in 2021. Furthermore, it has been given a free hand to develop its land, the large majority of which is well located, and expects to invest EUR 200 million over the next six years. Fourthly, the company has been provided with the liquidity it needs to implement the new strategy and, finally, Asentia possesses a team of professionals with the experience and expertise required to face the new challenges the future holds.
Asentia currently has over 1,500,000 m2 of land, of which 72% is residential land, with extremely good locations particularly in Madrid, Barcelona and Seville. Land for offices accounts for 19% of its portfolio and the remainder is either commercial or industrial.
Asentia and its five-year history
Asentia was founded in July 2010 by Inmobiliaria Colonial as a result of the debt refinancing conditions agreed on by Inmobiliaria Colonial's creditors. It was created to group together Colonial’s assets relating to the land and property development business. In early 2014, Colonial reduced its stake in Asentia from 100% to 20% and since June 2015, as a result of the refinancing process at Asentia, Colonial has had a residual interest.
From its creation until the new refinancing agreement, Asentia focused on maintaining and managing its assets, while working on reaching stable, long-lasting agreements with its creditors to refinance its debt. Additionally, it completed the developments which were already underway, but did not launch any new projects.
From this point on, Asentia, solidly backed by its new shareholders and the measures put in place, is redirecting its strategy by channelling it towards value generation.