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MADRID, March 16 Homebuilder Neinor Homes will
price a planned March stock market flotation at 16.46 euros per
share, it said on Thursday, valuing the company at 1.3 billion
euros ($1.4 billion) in Spain's first listing of a residential
builder in more than ten years.
The deal, aimed at institutional investors, will include a
capital increase of about 100 million euros to repay corporate
debt and fund land purchases.
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 is returning to Spain after a 2008
property crash left a glut of unsold properties built with
Neinor will begin to receive offers on March 17 and books
will close on March 27, with a listing planned for March 29, it
said in a prospectus posted with the Spanish stock exchange
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.
The deal is one of three stock market listings announced so
far this year in Spain. The two others are car parts maker
Gestamp and cash-in-transit unit Prosegur Cash.
Citigroup and Credit Suisse are acting as joint global
coordinators and bookrunners on the Neinor listing. Santander,
BNP Paribas and J.P. Morgan are also bookrunners on the deal.
Investment bank Lazard is advising.
($1 = 0.9314 euros)
(Reporting by Sonya Dowsett; Editing by David Goodman)