The real estate investment fund Silicius has given the green light to transfer a portfolio of assets to Merlin Properties in exchange for Merlinβs equity stake. As a result, Merlin, a giant of the Spanish real estate market and listed on the Ibex 35 index, is fully withdrawing as a Silicius shareholder. Under the terms of the deal, Merlin receives assets worth a total of β¬67 million, equivalent to the 17.9% share it held. In return, Silicius transfers to Merlin luxury apartments in Madrid and a hotel in Menorca.
Merlin representatives clarified that the acquired assets are not strategic for the company, as its portfolio does not include residential properties or hotels. However, they are considered highly liquid assets, and the company saw a lucrative opportunity in this deal. Specifically, it involves a residential building on Calle Madrazo in central Madrid, featuring upscale apartments and retail premises on the ground floors, as well as a hotel in Binibeca (Menorca) currently managed by the BarcelΓ³ chain.
The decision to carry out this operation was made at an extraordinary shareholdersβ meeting of Silicius held on November 18th. The transaction is structured as a capital reduction of 5.6 million shares, which are being transferred to Merlin in the form of the aforementioned assets. Notably, the market value of Siliciusβs 17.9% stake on the BMW Growth exchange at the time of the deal was β¬61.3 million. Thus, the final value of the assets received by Merlin exceeded the market value of its stake by almost β¬6 million, although the exchange was conducted in assets rather than in cash.
After the transaction is completed, Silicius’s market capitalization will decrease from 342 to 281 million euros. This exchange will have little impact on Merlin’s financial position, as it simply involves swapping one type of asset (shares) for another (real estate). The deal will be finalized after the creditor objection period expires and the condition for early repayment of bank debt related to the transferred properties is met.
This transaction brings to an end a five-year shareholder relationship between the two companies. Merlin became a stakeholder in Silicius in 2020 by contributing three shopping centers: ‘Fira’ in Reus (Tarragona), ‘Thander’ in Murcia, and ‘Nassica’ in Getafe (Madrid). These assets were valued at 170 million euros, representing 34% of the company at the time. By 2022, Merlin had sold half of its stake for 80.9 million euros. The option to exit the capital was originally stipulated as part of the liquidity mechanism agreement.
Notably, Merlin Properties SOCIMI, S.A. is one of the leading real estate companies in Spain. Founded in 2014, it quickly became a key player in the market, specializing in the acquisition and management of commercial assets. The company’s portfolio mainly consists of office buildings, logistics platforms, and shopping centers, located at strategic points across Spain and Portugal. Merlin Properties is listed on the Spanish stock exchange and is part of the prestigious IBEX 35 index, which includes the country’s largest companies. Under the leadership of CEO Ismael Clemente, the company has established itself as a reliable and major investor. Its portfolio includes landmark properties such as the Torre PwC skyscraper in Madrid. The company is known for its active portfolio management strategy, focused on creating value for shareholders. Merlin constantly analyzes the market for opportunities to optimize its investments. The exit from Silicius capital is an example of such a strategy, allowing the company to shed non-core assets in favor of more liquid ones. This highlights the company’s flexibility and pragmatic approach to managing its investments.
