Spanish REIT Merlin Properties has emerged as the winner in the Corporate Transaction category of PropertyEU's Deal of the Decade Awards with its historic takeover in 2015 of Testa Inmuebles, the property arm of construction giant Sacyr, for €4.2 bn.
In 2015 Merlin Properties Socimi acquired Testa Inmuebles, the property arm of Spanish construction giant Sacyr, for €4.2 bn. CBRE acted as advisor to the buyer. The deal was Merlin’s largest acquisition since launching on the stock exchange in 2014 and sparked a buying spree in subsequent years, including the takeover of Madrid-based rival Metrovacesa in 2016 and the acquisition of Barcelona skyscraper Torre Glòries for €142 mln in January this year.
The string of acquisitions – fuelled by two bond issues that raised over €1.6 bn in 2016 – catapulted Merlin to 4th position in PropertyEU’s ranking of Top 100 Investors in 2016 with a total transaction volume of €7.1 bn.
The Sacyr takeover was seminal in that it helped Merlin consolidate its position as the biggest player in the Spanish market as well as bolstered the Spanish listed REIT market in Europe.
Jury comment
The jury said the acquisition was remarkable not only because it was the biggest real estate transaction in Spanish corporate history, but also because it was completed so quickly – in less than four weeks. Besides size and speed, the transaction was a ‘bold move’ as it was was done in stages and with sophisticated financial engineering. ‘The speed and magnitude of the transaction make this deal unique,’ the jury said.
1st RUNNER-UP
In 2011 CBRE Group acquired ING Real Estate Investment Management Operations Europe from the ING Group for $900mln.The deal was submitted by CBRE, who also acted as advisors to the buyer. The judges said the milestone transaction made CBRE a global player and the world’s largest real estate asset manager at the time, allowing them to offer clients an expanded global platform to meet their investment objectives.
2ND RUNNER-UP
In 2011 JLL agreed a £200mln buy-out of King Sturge, creating the UK’s biggest property agent. The deal was submitted by JLL, and the advisors were Addleshaw Goddard, PWC, Baker McKenzie and KPMG. The judges said the merger of equals was a strong cultural and strategic fit, which enabled JLL to increase significantly its coverage of the residential, industrial, regional and CEE markets, and KS to have access to a global market place. One judge’s comment was that ‘sometimes 2+2 really does make 5.’
