Habitat buys Ferrovial’s Real Estate division for 1.6 billion euro net


Ferrovial will own 20% of Spain's new real estate heavyweight Grupo Ferrovial and Habitat Grupo Empresarial today signed an agreement under which Habitat acquired all of the shares of Ferrovial's real estate division for an enterprise value of 2.2 billion euro, which includes approximately 600 million euro of debt and 1.6 billion euro of equity, of which 160 million euro will be distributed beforehand by Ferrovial Inmobiliaria as a dividend and the remaining 1.440 billion euro will be paid as the price for the shares. The sale does not include Ferrovial's real estate business in Poland, and Ferrovial will continue to be exposed to the Spanish real estate business as it will acquire approximately 20% of Habitat Grupo Empresarial in a capital increase that will be performed to admit new shareholders. The investment to acquire 20% of Habitat Grupo Empresarial will be approximately 125 million euro. Ferrovial will obtain about 770 million euro in capital gains net of tax on the deal. This acquisition establishes Habitat Grupo Empresarial as a leading property developer; with new development plans in all its operations in Spain and Portugal, it envisages faster growth and plans to become a leading player in the real estate business. Habitat will take over Ferrovial Inmobiliaria's seven regional offices throughout Spain. The agreement also covers the Don Piso realtor network. The new group will focus on developing first homes. It has 2.5 million square metres of building land and work in progress, and it sells approximately 3,000 new homes per year. Habitat's hotel division, its construction arm and its pool of financial investees are independent of this operation. Both parties highlighted the synergy between the operations of Ferrovial Inmobiliaria and Habitat, a group which was founded in Barcelona in 1953and is specialised in developing homes, offices and commercial premises for sale or rent. It has also been in the hotel business for the last ten years. The acquisition enhances and complements Habitat's plans to establish and expand in Spain and Portugal as well as in Chile, Ecuador, Argentina, Hungary, China and Mexico based on a strong network with a presence throughout Spain while leveraging the experience and knowledge of Ferrovial Inmobiliaria's work force. Ferrovial will continue with its expansion plans in Poland. Álvaro Echániz, who is currently general manager of Ferrovial's Real Estate division, will continue as head of Ferrovial's real estate business in Poland and other countries where it manages property. Habitat was advised by law firm J. Soria Abogados Asociados, while Ferrovial engaged Cuatrecasas Abogados. The deal is financed by a syndicate of eight banks headed by La Caixa, with Banc de Sabadell, Banco Popular, Caja Madrid, Santander Central Hispano, Banesto, Caixa Catalunya and ICF (Institut Català de Finances). a) The new group in figures (2005 numbers)
REVENUES million euro
LAND BANK million
b) About FERROVIAL Acceptance of Habitat's offer to buy the Real Estate division is part of Grupo Ferrovial's new business logic and strategy, with over half of the group's revenues (Sept. 2006) coming from outside Spain (54.1% of the total), 93.2% growth in revenues from other countries, and the goal of diversifying into construction and infrastructure and service concessions internationally. The operation significantly restores Ferrovial's investment capacity, gives it a net cash position and further consolidates its diversification and leadership in DBFO (Design, Build, Finance and Operate) contracts for transport infrastructure worldwide. c) About HABITAT GRUPO EMPRESARIAL Founded in 1953 by José Mª Figueras, father of the current Chairman Bruno Figueras, and José Suñol, Habitat Grupo Empresarial is one of the leading property developers and builders in the Catalonia region of Spain. Its extensive experience has enabled it to survive and adapt to the difficulties experienced by the sector in recent years. Habitat Grupo Empresarial faces major challenges in the coming years in the form of very important projects. They include Habitat Sky, a 29,000 square metre complex comprising a five-star hotel plus offices, designed by Dominique Perrault, in Barcelona's downtown Avenida Diagonal, and the Distrito 38 office complex, designed by Arata Isozaki and Alejandro Zaera Polo, which will be one of Barcelona's largest office developments (70,000 square metres). Habitat Grupo Empresarial views each project as unique and distinctive. For that reason, it has always worked with top architects, including JL Sert, on Les Escales Park (FAD award 1974), Coderch, C. Ferrater, JL Mateo and McDonough. One of Habitat's most outstanding projects was recently included in the "On Site: New Architecture in Spain" exhibition at the MOMA in New York. The company's culture includes a commitment to the environment and sustainability, as expressed in projects which are underpinned by these values. In 2005, Habitat began to work with WWF International on an environmental conservation and sustainable tourism project in the Cambodian jungle, which involves building an infrastructure of eco-lodges with minimal environmental impact.


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