TPG Real Estate Partners (“TREP”), the real estate equity investment platform of alternative asset firm TPG, the global alternative asset firm with more than $108 billion of assets under management, has acquired 75% of Témpore Properties (“Témpore”), a Spanish Real Estate Investment Trust (“Socimi”) listed on Madrid’s Alternative Stock Exchange (MAB) from Sareb.
Sareb, which established Témpore in November 2017, will retain a 24.12% stake in the Socimi.
Under the terms of the agreement, TREP will pay an indicative price of 12.17 euros per share of the Socimi less the value of the next dividend payment to be approved at Témpore’s Extraordinary General Meeting, which will take place on August 5, 2019. TREP will extend its purchase offer under the same conditions to existing minority shareholders, who represent 0.88% of Témpore.
This indicative price per share puts a value on the shares of the company of 329.5 million euros, which is 10% above its market capitalization at the close of the MAB on July 4, 2019 and 17% higher than the original IPO value.
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Spanish REIT Témpore manages a portfolio of more than 2,200 residential rental units located in major cities across Spain, including Madrid, Barcelona, and Valencia. The company was listed on the MAB in March 2018 and is one of the largest residential Socimis in Spain. Under its new shareholder structure, Témpore will remain listed on the MAB and continue to be led by CEO Nicolás Díaz Saldaña. Témpore’s headquarters will remain in Madrid.
“With Témpore, we saw a unique opportunity to partner with Sareb to effectively manage, enhance, and grow one of the leading residential Socimis in Spain,” said Michael Abel, Partner at TPG Real Estate.
As part of the transaction, TREP will assume four of the seven seats on Témpore’s Board of Directors. The appointment of Michael Abel, Matthew Coleman, Daniel Valenzano and Jonathan Farrell as new directors representing TREP will be submitted for approval in Témpore’s upcoming Extraordinary General Meeting.
Evergreen is acting as legal adviser to Sareb. Alantra is acting as financial adviser to TREP, with Kirkland & Ellis and Uría & Menéndez acting as legal advisers. JLL and Básico are acting as real estate advisers to TREP.