Categories: General Sports News

Merlin sells its 662 branches to BBVA for 1,987 million

BBVA has repurchased a portfolio of 659 branches and three unique buildings from Merlin Properties for 1,987 million euros, as announced by the socimi to the CNMV.

The property owner led by Ismael Clemente announced in February that he was going to reactivate the sale of the branches rented from the entity. These assets, included in the portfolio named Tree, they had a book value of just over 1,750 million euros.

At the time, the company anticipated that it had a clear schedule for the sale of these assets, with four divestment opportunities, the first of which was last February. Likewise, Clemente pointed out that there was a great appetite in the market by institutional investors, although BBVA had the right of first refusal over these assets.

In fact, it has previously used this purchase option with another smaller portfolio of branches. Specifically, it acquired a batch of 166 bank branches for an amount of 252 million euros.

BBVA was the one that initially sold its branches between 2009 and 2010 under a contract of sale and lease back to Tree Inversiones Inmobiliarias, currently owned by Merlin. At that time the portfolio consisted of more than 1,000 branches. Currently, the entity chaired by Carlos Torres, had a rental contract for them until 2040.

Merlin will take advantage of the money from the sale of these assets to reduce debt. Thus, of the 1,250 million that enter the socimi’s cash, 250 million will go to dividend and the remainder to reduce your leverage.

The purpose of the entity

With this operation, “it provides greater flexibility in the management of the branch network in Spain -as it becomes its owner again- and generates significant economic savings between now and the date on which the agreement ends, in 2040, in a context of growing inflation” explains the entity, specifying that the current contract “includes a clause according to which rental income is adjusted annually at 1.5 times inflation”.

Thus, BBVA specifies that it has agreed to pay 1,987 million euros for 100% of the shares of Tree Inversiones Inmobiliarias, owner of the properties (659 branches and three unique buildings), in an operation that is estimated to have an initial consumption of – 7 basis points of capital, and generate an initial net impact on the income statement of approximately -200 million euros, once the transaction is closed, foreseeably at the end of the second quarter. “These impacts will be more than offset by the expected cumulative savings following the execution of this transaction.”

comments0WhatsAppFacebookTwitterLinkedin
Chris Lawrence

Chris writes Football and General Sports News on Sportsfinding. He is the newest member in our team, and has a lot of new ideas which he discusses with us to take this portal to new heights. He is a sports maniac, and thus, writing about various sports. He is fond of tattoos.

Recent Posts

Zendaya is crowned queen of elegance

The 82nd edition of the Golden Globes has already exceeded all expectations on the red…

9 mins ago

from Karla Sofía Gascón’s tears to jokes against Trump and the Church

The Hollywood awards season has begun with a bang at the 82nd edition of the…

2 hours ago

Roberto Carlos, father (at least) of 11 children with 7 women, separates and settles in the Real Madrid sports city

Married to the physiotherapist Mariana Luccon since 2009, this Sunday the separation of the former…

4 hours ago

of what Doña Sofía “endured” the “more than 2,000 women” and Bárbara Rey

This Sunday, January 5, King Juan Carlos turns 87 in Abu Dhabi with a celebration…

6 hours ago

Victoria Federica takes her with an operator on the 90,000 euro private jet that Juan Carlos I gave her: “Mount the world championship”

Victoria Federica, from Abu Dhabi, has also taken advantage of her social media window to…

8 hours ago

The emotion of chef José Andrés upon being decorated by Joe Biden: “Tremendous honor”

This Saturday, Spanish chef José Andrés received the highest civilian distinction in the United States,…

10 hours ago