MERLIN Properties commences trading on the Spanish Stock Exchanges

MERLIN Properties Socimi S.A., one of the main real estate companies listed on the Spanish stock market (MC:MRL) specialised in the acquisition and management of commercial property in the Iberian region, has started trading today on the Madrid, Barcelona, Bilbao and Valencia Stock Exchanges.

This stock market debut, the largest flotation in Spain since July 2011, was celebrated today at an event at the Madrid Stock Exchange where Antonio Zoido, Chairman of Bolsas y Mercados Españoles (BME), and the management of MERLIN Properties, led by Ismael Clemente, Executive Chairman and CEO; Miguel Ollero, CFO; and David Brush, CIO were present.

In terms of size, MERLIN Properties is the largest IPO in Spain since July 2011. More importantly, the flotation is the largest IPO of a SOCIMI (REIT) ever registered in the EMEA region.

Ismael Clemente, Executive Chairman and CEO of MERLIN Properties stated: “We have successfully executed the largest ever stock market flotation of a REIT in Europe, which is clearly testament to the trust the market has placed in our business model. I’d also like to express my sincere thanks to the investors for the backing they have given our company.”

“I’m confident in the future of MERLIN Properties, a company that will undoubtedly benefit from its unique traits: we have an unbeatable portfolio of assets which have been yielding returns from the onset, an extremely efficient cost structure and a team of professionals with proven experience in the European real estate market. MERLIN Properties will continue to focus all its efforts and resources on further developing its business while maintaining its core goal: create sustained long-term value for the company and its shareholders.”

The size of the IPO was set at 125,000,000 shares, representing a market capitalisation of 1,250 million euros excluding the over-allotment option which, should it be exercised, will amount to a maximum of 8,000,000 shares. If the over-allotment option were exercised, the company’s capitalisation would amount to 1,330 million euros.

As part of the IPO, the company has signed irrevocable undertakings with the shareholders of Tree Inversiones Inmobiliarias S.A., subject to the completion of the IPO, whereby MERLIN Properties will acquire 100% of the share capital of Tree Inversiones Inmobiliarias S.A. for 739.5 million euros, after adjustments, to reflect 2014 sales. Tree Inversiones Inmobiliarias S.A. currently holds a portfolio of real estate assets (880 bank branches and 5 buildings) located throughout Spain and leased in their entirety to BBVA. This acquisition is expected to be executed in the coming days.