Regional News

The Israeli fund Adar increases long-term investment in Neinor

By Silvia Castro Betancourt 0 Comments NEWS, Regional News

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

The Israeli fund Adar Capital Partners, considered the largest shareholder of Neinor Homes, sees its commitment to the property developer as an investment in the medium and long-term. This firm, which controls 28.676% of the real estate company, does not plan to exceed 30% of the securities that would oblige it to launch a takeover bid for the rest of the capital.

Adar has landed in Neinor since its launch in March 2017. At that time, it acquired 5.2% of the capital of the developer, according to the records of the National Securities Market Commission. Since February of this year, coinciding with a fall in the share price of the company, the fund has gradually increased its share to its current position, reached in March, on the edge of the takeover bid.

Being a firm little known in the Spanish financial market, there are doubts about whether its position was opportunistic, due to the low value of the Neinor stock, with the intention of quickly leaving the capital. Sources of the fund ensure that its commitment to Neinor is long-term since it wants to remain between five and ten years, relying on the recovery cycle of the housing sector in Spain.

Behind Adar is the Israeli investor of Argentine origin, Zev Marynberg, with his own resources and a few other private investors. It is headquartered in the Cayman Islands and Jerusalem. It is a manager with a vehicle called Adar Macro Fund, which has disbursed around 1,700 million euros in different assets - approximately half of the amount through debt. Currently, its position in Neinor is the largest of its investments, with a current market value of 350 million.

The promoter is currently worth around 1.2 million, according to its current price. The company has left more than 18% of the price of its shares since February when it reported that it lowered its forecast of home deliveries for this year and for the next. Specifically, a thousand less than those announced in the business plan that had been made known to investors before the release of the stock market.

This reduction in the forecasts of home deliveries was very badly received by investors, who have put under the microscope also the plans and fulfillments of the other two large promoters that have gone public in the last months: Aedas and Metrovacesa.

While Aedas does meet its objectives, Metrovacesa, as announced by Cinco Días in August, reduced the forecast of the number of home deliveries for the year 2020 by 25%.

Neinor is currently the spearhead of the sector in the recovery of housing construction activity after the crisis. For this year, it plans to deliver 1,000 homes, the next another 2,000 and by 2020 the goal is to reach 4,000 homes.

The new Neinor was driven by the Lone Star fund in 2015 when it acquired the old real estate from Kutxabank. It was the first to return to the stock market and the most advanced has the construction plans.

Lone Star left Neinor in January, not a year since its debut on the stock market. In just three years, the US fund closed the investment cycle. After this strategy was Juan Pepa, who directed the strategy of Lone Star in Spain.

Precisely the departure of the US fund from the capital, just one month before the reduction of Neinor forecasts raised suspicions in the sector. The new shareholder of reference, the Adar fund, also has Jorge Pepa, brother of the ex-director of Lone Star, responsible in Spain with Francis Btesh. Both were chosen by the Israeli firm as proprietary directors in Neinor.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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