Testa Residential approves the advancement of 665.5 million euros of capital “in kind”

Testa Residential approves the advancement of 665.5 million euros of capital “in kind”

The Board also approved a cash provision of 322,482.43 euros, destined exclusively to minority members so as to allow them to maintain their position in the capital. Testa Residencial is the first platform specialising in the long-term letting of houses within national reach with a park of more than 8,000 residential units.

On the motion of the Administration Council, the Board approved the remaining points on the day’s agenda, centred essentially on adapting the Society’s statutes to meet the law which regulates the running of socimis and also the rules for dividend distribution.

Ignacio Moreno, the president of Testa Residencial, stressed that, after the celebration of this Extraordinary General Meeting, the society faces “a new stage and we are convinced that we will be able to offer our shareholders, employees and tenants important benefits in the near future”.

In respect of the cash provision carried out by the majority shareholders, comprising more than 3,300 residential units, the president pointed out the developmental work in order to identify a significant number of properties for residential use which would conform to the profitability aims of the society. “I can assure you”, he said to the shareholders, “that the society and its Administration Council have been extremely rigorous in the selection of these assets seeking not only quality but also a good fit of its characteristics with the present portfolio of Testa and with its working strategy”.

With regard to the valuation of these assets, the president assured all that “it is supported not only by the independent appraiser at Testa Residential but also, as is prescribed, by an independent expert appointed by the Registro Mercantil. As anticipated, this real estate will bring a number of business benefits. As well as strengthening the indisputable leadership of the society in Spain’s rental housing sector, as already mentioned this addition will allow the Society to improve its capacity to obtain finance, it will generate important economies of scale derived from the greater volume of assets, it will produce synergy in cost savings and will also lead to a diversification of income”.

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