Property firm Metrovacesa, controlled by BBVA and Santander, has confirmed that it will return to the stock market via an initial public offering (IPO) of its shares amongst institutional investors. The company left the market in 2013 and plans to return in February. It has a portfolio of 6.1 million square metres of land, valued at 2.6 billion euros, and with the capacity to develop 37.500 homes. The portfolio consists of the land assets which were not included in Metrovacesa’s merger with Merlin. Part of this portfolio of land has also been invested in by Santander and BBVA over the last year via two non-cash capital hikes worth 1.424 billion euros. Santander has 70% of the capital and BBVA 29.6%.
Furthermore, the company says it does not need to buy any additional land to meet its objectives in terms of the annual delivery of homes over the next eight years. According to Metrovacesa, this fact “gives its business model sustainability and a unique cash generation profile.”
Its main listed rivals, Neinor Homes and Aedas have land to develop 12.000 and 13.00o houses, respectively. Metrovacesa estimates handing over between 4.500 and 5.000 homes annually for 2021.
The company is totally focused on the domestic market, with land in 31 out of 50 regions: 67% of its land is in the “big cities” like Madrid, Barcelona, Malaga, Valencia or Seville. Another 20% is in the “main tourist destinations” like the Costa del Sol, the Balearic Islands, The Canary Islands and the Cadiz coast.
Metrovacesa’s stock market listing will be the first market debut for this year and the third for a property developer since the crisis. Although we still don’t have the key figures – what the price will be, when the listing will be, if there will be a capital hike or not, etc – it will also be the cherry on the top of the new era for the property developers in the stock market.
