Lone Star to float Neinor Homes in Madrid

Amedeo Goria
06 March 2017

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Lone Star-backed Spanish residential construction company Neinor Homes has announced its intention to float on the Spanish stock exchange.

Nine years after the collapse of the Spanish real estate sector and after two years of private equity ownership, Neinor published its intention to float an aggregate of new and existing shares of 40-60% on the Madrid, Barcelona, Bilbao and Valencia stock exchange and automated quotation system, called Mercado Continuo.

As part of the transaction, the business expects to reap gross proceeds of €100m to reduce its existing corporate debt and fund continued acquisitions of fully permitted land.

Lone Star and other selling shareholders committed an overallotment option of up to 15% of the size of the offering and expect to agree on a lock-up period of one to three years, following the settlement date of the offering.

Citigroup Global Markets and Credit Suisse Securities will act as joint global coordinators and bookrunners for the offering. Banco Santander, BNP Paribas and JP Morgan Securities will act as additional joint bookrunners.

Alantra Partners, Banco de Sabadell, Bankinter, CaixaBank and Norbolsa are acting as joint lead managers, while Lazard Asesores Financieros is providing financial advice.

Following the float, the company aims to acquire €380m of new land as part of its 2021 business plan and expects to deliver approximately 3,500-4,000 housing units per annum.

In December 2014, Lone star fully acquired a stake in the real estate branch of Spanish lender Kutxabank for €930m, outbidding three competitors, according to a statement. As part of the deal, the GP set in motion a broad restructuring and rebranding process that saw the company renamed Neinor Homes, according to a source familiar with the situation.

Established in 2015, Neinor develops residential units focusing on the middle and upper-middle market segments. The company is headquartered in Bilbao and has a presence in Madrid, Barcelona and Córdoba.

Currently, the business employs a staff of 200 and claims €1.12bn of assets under management, according to a statement.