Lisbon and Barcelona are the priority for Merlin in 2017

Lisbon and Barcelona are the priority for Merlin in 2017

This strategy follows an initial phase when Madrid had been the main focus for investment activity. From now onwards, the objective is to create geographical diversity in the portfolio, whilst maintaining interest in the same kinds of tertiary assets: offices, commercial space, commercial and logistics centres.

Another new policy this year is a decrease in importance of the hotel area in its range of projects, this area being considered as non-strategic. It was, indeed, with this in mind that the socimi recently completed the sale of a portfolio of 19 hotels to the French company Foncière des Regions, for 535 million euros.

The latest news further exemplifies this plan to reduce the importance of Madrid in their portfolio, with several upcoming divestments in this geographical region. The aim, according to that stated in the Spanish press, is to apply the capital obtained form these transactions to reduce “to some degree” their loan repayments to the bank and to finance new investments.

Merlin’s portfolio comprises, among other assets, 921 commercial spaces, 45 office buildings and six commercial centres, with more than two million square metres rented out, generating gross annual income of more than 300 million euros.

Additionally, Merlin is still negotiating with Acciona over a possible merger of their residential subsidiaries, Tesla Residencial and Acciona Real, in a deal valued at 350 million euros

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