Intermoney | Inmobiliaria Colonial (COL) (Buy, Target Price €8.5) reported on Tuesday, after the market close, that it has bought the Deeplabs platform, specialising in the management of scientific campuses, for €200 million from the Stoneshield fund. In turn, the REIT has reached an agreement with the same fund to create an investment vehicle to grow in this market segment at European level. Deeplabs has three scientific campuses in Barcelona and Madrid with 138,000 m2 of workspace and facilities. The deal has valued the science asset manager’s assets at €400 million with current leverage of 50%. Stoneshield will remain a 5% shareholder. Following the deal, Deeplabs plans to build a portfolio in strategic locations in the innovation sector such as Paris, Cambridge, Amsterdam, Berlin, Munich and Lisbon. Colonial expects a stabilised return of 7-8% on cost, and with a leveraged IRR of over 15%.
Assessment: Colonial’s somewhat surprising transaction would point towards a certain diversification in its portfolio, until now only focused on offices in Madrid, Barcelona and Paris. This new type of asset would represent approximately 4% of Colonial’s GAS. This move is understandable in a way, as the stock is currently being unfairly punished for the problems that the office asset presents in the United States, when the REIT’s assets have occupancies close to 100% and growing rents. The fact that yesterday’s agreement contemplates a growth in GAS in scientific campus assets of up to €2,400 million would clearly indicate that we are facing a strategic turnaround on the part of Colonial.
