Grupo La Finca to Acquire Värde Partners’ Stake in La Finca Global AssetsJanuary 11, 2022
MADRID – Grupo La Finca (“GLF”), the majority owner of La Finca Global Assets (“LFGA”), today announces that it has agreed to acquire an additional 38% stake in the business from Värde Partners, a leading global alternative investment firm, for €130 million with €2 million conditional on achieving certain targets by LFGA during 2022.
LFGA owns 11 buildings in Madrid’s central business district as well as LaFinca Business Park, one of the largest business parks in Europe located in Pozuelo de Alarcón, offering more than 225,000 square meters of office space.
Värde Partners initially purchased its stake in LFGA in December 2016. Over the last five years the company has taken a number of steps in an effort to unlock and create value, strengthening its financial position and making a series of governance and operational improvements to position the company as a leader in the office rental sector. This culminated in the registration of LFGA under SOCIMI, the Spanish legal regime for REITs, in 2017, with the shares subsequently listed on the Mercado Alternativo Bursátil in 2019.
“Through our partnership with GLF we have successfully implemented a series of value creation initiatives that have grown our investment and helped establish LFGA as a leading provider of office space in Madrid,” said Tim Mooney, Partner and Global Head of Real Estate at Värde Partners. “LFGA has continued to perform well, despite the challenges facing the office sector, and we believe it is well-positioned to capitalize on the economic recovery when Spain emerges from the pandemic.”
During the period leading up to Covid-19 the company substantially increased revenue and profitability, and has remained profitable throughout the pandemic. In addition, the company has maintained its capex program to improve the quality and energy efficiency of key assets. Three business parks – LaFinca Business Park, LaFinca CMS Business Park and LaFinca MV52 – have received a BREEAM sustainability rating of Very Good or Excellent.
Susana Garcia-Cereceda, President of LFGA and GLF, added: “Over the last five years Värde and LaFinca have collaborated closely for the ongoing improvement of LFGA and its financial performance. The purchase of Värde’s 38% stake marks the end of the company’s relaunch phase and I’d like to thank them for the trust and support they’ve given to both me and the management team. The decisions we’ve made together have helped improve the assets, adapting them to the new demands of our clients even in very complicated circumstances. I look forward to the opportunity to work with Värde again in the future.”
The deal is expected to be completed in the first quarter of 2022.
About Värde Partners
Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $85 billion since inception and manages $14 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde has offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.
LaFinca is a leading company in the Real Estate sector in Spain, with activities in both residential development and the management of its prime office assets in Madrid. LaFinca has positioned itself as the benchmark brand in exclusive homes. For more information visit www.lafinca.com