(Adds details on offer, context)
By Sonya Dowsett
MADRID, March 6 Spanish house builder Neinor
Homes said on Monday it intended to list up to 60 percent of its
share capital on the Spanish stock exchange in the country's
first market flotation of a residential developer in a decade.
Neinor, which is based in Bilbao in northern Spain and is
backed by U.S. private equity firm Lone Star, buys land for
developments in areas with high demand for housing including
Madrid, Barcelona and the Basque Country.
Residential construction in Spain is coming back to life,
with foreign investment pouring into developments in Madrid and
Barcelona, nine years after a property crash that devastated the
economy and financial system.
"The company has met with investors over the last two months
and received solid expressions of interest, reflecting the
vision investors have for Spain and the recovery of the Spanish
real estate sector," Neinor said in a statement.
Private equity firms have become the country's new
developers, looking to make a profit on residential building as
Spain enters its fourth year of economic recovery.
The deal is the second Spanish stock market listing
announced this year after security services company Prosegur
IPO-PROS.MC said on Thursday it would list its
cash-in-transit subsidiary on March 17.
As part of the deal, Neinor will carry out a capital raising
of around 100 million euros ($106 million), which will be used
to pay off corporate debt and fund land purchases, the company
Lone Star bought the property management arm of unlisted
Spanish bank Kutxabank and about half the real estate assets on
its books in December 2014.
Since then, the real estate management platform Neinor has
more than doubled its land bank by investing in land that
already has permits for construction.
It has 161 developments and more than 9,000 homes on its
books with a gross asset value of 1.12 billion euros, according
to a Savills real estate valuation.
Neinor hopes to sell between 3,500 and 4,500 houses per year
by 2020. It will have to invest up to 350 million euros per year
on land to obtain this target, it said on Monday.
Neinor has implemented a U.S.-style homebuilding operation
where buyers reserve homes off-plan with a small deposit. Once
up to 30 percent of apartments are pre-sold, building starts.
Keys are handed over to the new owners about two years later.
The average price of houses sold is about 300,000 euros, the
company said in a statement.
Citigroup and Credit Suisse are acting as joint bookrunners.
Santander, BNP Paribas and J.P. Morgan are also book runners on
the deal. Investment bank Lazard is advising.
($1 = 0.9436 euros)
(Reporting by Sonya Dowsett, editing by Louise Heavens)