A new Spanish REIT led by former Brookfield Asset Management partner David Brush has confirmed plans for an IPO in Spain.
Merlin Properties intends to invest part of the proceeds of the initial public offering – which could be up to €500m – in a fully let, high-quality Spanish real estate portfolio immediately after closing.
It said this “should allow shareholders to immediately benefit from a cash generating, best-in-class asset”.
The remainder will be used to finance its expansion through the acquisition of commercial property in the Iberian region, with a focus on prime assets in Spain’s main cities and, to a lesser extent, Portugal.
The firm is to be managed by Spanish asset management company Magic Real Estate, which was founded by Ismael Clemente and Miguel Ollero.
Brush, who was managing partner at Brookfield and former head of RREEF, will be chief investment officer.
It follows two other Spanish property floatations in recent months as investors look for distressed deals in the eurozone.
In February Spanish company Grupo Lar launched a €400m IPO of Lar Espana Real Estate, followed by Azora with the €500m launch of Hispania REIT in March.
Credit Suisse will act as sole global co-ordinator and joint bookrunner, along with Deutsche Bank and UBS.
bridget.o’connell@estatesgazette.com
