Criteria Caixa will become the largest shareholder of Colonial, with a 17% stake.

CriteriaCaixa, the holding company for the investees of the La Caixa Banking Foundation, reaffirms its commitment to the real estate sector. The company, which currently owns through InmoCaixa real estate assets valued at nearly 2.7 billion euros, has just announced an agreement with Colonial to become its largest shareholder, with a 17% stake, slightly above the package controlled by the sovereign fund Qatar Investment. Until now, Criteria owned 3% of Colonial. The operation, which must be validated by an extraordinary general meeting of Colonial shareholders in June, will be carried out through a capital increase of 622 million euros, of which 350 million will be contributed by Criteria in cash and another 272 million through the contribution of a portfolio of eight properties.

Specifically, InmoCaixa will transfer, in the form of a non-cash capital increase for 272 million, eight properties totaling more than 20,000 square meters of offices and more than 600 rental homes. The portfolio contributed to Colonial includes three office buildings located in Madrid and Barcelona and five residential rental buildings located in Madrid, Zaragoza, and Malaga. The office properties included in the operation are located at number 331 on Llull Street in Barcelona, at number 30 on Gran Vía in Madrid, and on Mendizábal Street in the Spanish capital, a recently renovated complex called Visionary Building, near Méndez Álvaro.

According to the real estate group chaired by Juan José Brugera, with this operation, Colonial gains "a new long-term and prestigious reference shareholder" and "strengthens and gains financial flexibility" to undertake new acquisitions in the market, in addition to reducing its debt and launching a new investment plan it has named Alpha X. "Criteria is a perfect partner for Colonial. Its entry into the shareholding is more than friendly and has the full support of the board of directors" and the main shareholders of the group, Pere Viñolas, CEO of the Barcelona-based real estate company, highlighted at a press conference.

"With the incorporation of CriteriaCaixa as a reference shareholder, we strengthen our capital structure with an institutional investor with a long-term vision," Brugera pointed out, after noting that the transaction "allows accelerating growth and value generation through new investment projects and an improved capital structure that will translate into new business opportunities. It is expected that CriteriaCaixa ---which has Isidro Fainé as chairman and Ángel Simón as CEO--- will occupy two positions on Colonial's board of directors, which will increase from twelve to fourteen members.

In a statement, CriteriaCaixa has stated that with this investment it intends to "strengthen Colonial's leadership position in its office rental business, as well as contribute to its urban regeneration strategy and reinforce the capital structure to boost the pan-European growth and value creation strategy." According to the La Caixa holding company, this investment and the transfer of assets to Colonial "contributes to accelerating" the reorganization of InmoCaixa's asset portfolio, valued at 2.7 billion, of which 56% are for rent, both residential and office. In this vein, Criteria has announced that in the coming years it will "increase the intensity" of its rotation strategy for its current portfolio "to accelerate the improvement of its overall profitability." Recently, the holding company has also invested in the purchase of 3% of Puig and has increased its stake in Telefónica to 5%.

Construction of a clinic in Barcelona's 22@ district

To undertake this capital increase of 622 million, Colonial will issue 87.7 million new shares. Criteria will pay 7.1 euros per share, although this figure will be adjusted once Colonial pays the ordinary annual dividend in June. According to Viñolas, these 7.1 euros incorporate a premium compared to the company's current share price. This Thursday, the socimi's shares on the stock market closed at 6.42 euros after revaluing by 4.39%, close to the maximum of the last twelve months, registered at the end of December (6.66 euros). The investment of 622 million will allow Criteria to acquire a 17% stake, slightly higher than that of Qatar Investment after the capital increase. For its part, the Finaccess group will have around 13%, the Puig family group between 6.5% and 7%, and the Santo Domingo group around 6%.

Thanks to the entry of 350 million into its coffers, Colonial will accelerate its investment plan in new properties to "capture the return from the recovery of the European real estate cycle." In this regard, this Thursday the group announced the launch of the Alpha X project, which contemplates an investment of 385 million until 2028 to transform four assets in Paris, Madrid, and Barcelona totaling more than 110,000 square meters and generating additional annual rents of 64 million. Noteworthy is the conversion of the former T-Systems headquarters on Sancho de Ávila street in Barcelona into a "facility linked to Health Sciences." According to various media outlets, Colonial is negotiating to build a clinic for Sanitas in this property. The Alpha X plan also includes two projects in Paris consisting of the transformation of the former Natixis headquarters and the former Gaz de France headquarters, and a project in Madrid linked to the former IBM headquarters, in the Santa Hortensia area.