Intermoney | The company (Buy, PO €0.7) announced on Friday after the market closed an agreement with Mohari to share the assets and liabilities of the Canalejas Centre. The construction company will retain the car park and shopping centre, along with an associated debt of €45 million, while Mohari, the investment platform of Israeli businessman Mark Scheinberg, will take over the Four Seasons Hotel.
The centre as a whole had a book value of €162 million. Both parties have also agreed to negotiate with the creditor banks, led by Santander, an extension of the debt maturity dates, while the agreement is being finalised and the asset is being revalued.
Assessment: This is good news for OHLA, which will now be able to proceed with the sale of these assets without having to negotiate with Mohari at the same time. The funds raised from this sale will be used to repay the bonds maturing in 2029.
In our valuation of OHLA, we estimate Centro Canalejas to be worth around €70 million, less than half of its book value, so we will not be making any changes for the time being. To date, OHLA has consolidated the asset using the equity method, and we believe that its share is now ready for sale.
