Aggregate Holdings has completed the sale of its subsidiary VIC Properties, one of the largest real estate developers in Portugal.
The sale forms part of Aggregate’s strategy to simplify its capital structure and asset base, and refocus on its core German markets.
As at 30 June 2022, VIC accounted for net assets of €1,150 million and total assets of €1,882 million, including goodwill of €1,135 million, and the transaction will result in a reduction of net debt of more than €670 million.
Under the terms of the transaction, Aggregate received an equity participation in the post-sale group, entitling it to receive 5% of all net distributions to the new investors in excess of €1 billion.
This sale demonstrates the increasing interest in Portugal as an investment market for international investors that has occurred since Aggregate acquired VIC in 2018. The existing VIC management team remains in charge to lead VIC into the next phase of its development. Following the sale, VIC Properties will receive significant new funding to continue and further accelerate the development of its residential projects in Lisbon and in the region of Comporta and Melides.
“Aggregate has again demonstrated its ability to successfully close major strategic transactions in the current environment. This represents another significant milestone in in Aggregate’s strategy to simplify its capital structure and asset base, and completes the refocusing on our core German markets. Aggregate is continuing to work on realising the underlying value of its prime Berlin-based assets over time to pay down debt and de-lever the company”, commented Cevdet Caner, Chief Executive Officer of Aggregate.
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