Ivanhoe Cambridge backs Spanish REIT Arima's capital hike

Canadian investor Ivanhoe Cambridge has committed to back a €100 mln capital increase to be carried out by Spanish REIT Arima.

Arima, which focuses on prime offices largely in the Spanish capital, can decide to incrase the share issue by 50% to up to €150 mln. The operation would double its market capitalisation which currently stands at €140 mln.

Ivanhoe Cambridge has committed to invest €60 mln in the operation, at a maximum subscription price of €10.4 per share. Following the capital increase, the investor's stake in the Spanish REIT will be no less than 20.3% and no more than 29.9%, depending on the final amount.

Árima Real Estate, led by CEO Luis Alfonso López de Herrera-Oria, has completed several transactions since being founded earlier this year by Luis Lopez de Herrera-Oria's former management team at Axiare Patrimonio, building up a portfolio worth €175 mln.

In February it announced it had invested all the funds raised through its IPO in two deals comprising four office buildings in Madrid, for a total outlay of €93.7 mln. They include two properties on calle María de Molina and a LEED Gold-certified building on Cristalia Business Park.

Offices account for 87% of the total portfolio so far, with logistics making up the remainder. The company has set a fundraising target of €300 mln and aims to invest 80% of it in Madrid's office market, as well as looking for opportunities in Barcelona and the logistics sector.

Ivanhoe Cambridge has long been active in Spain. Two years ago the company sold the Xanadú shopping centre in Madrid to UK retail REIT Intu Properties for €530 mln.


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