Neinor secures €225mn with record €1.2bn demand to fund the AEDAS Tender Offer acquisition

Core Insights - Neinor Homes has successfully completed an accelerated bookbuild offering (ABB), raising €225 million to fund the acquisition of AEDAS Homes, targeting a +20% IRR and +1.8x MOIC [1][6]. Group 1: Offering Details - The offering involved issuing 14,993,750 new ordinary shares at €15.25 per share, representing a +10% premium to pre-tender offer announcement levels [2]. - The new shares are expected to start trading on the Spanish stock exchanges on June 27, 2025, with settlement anticipated on June 30, 2025 [3]. - Following the issuance, the total number of shares outstanding will increase to 89,962,501, with the three largest shareholders holding a combined stake of approximately 60% [3]. Group 2: Demand and Market Response - The ABB attracted exceptional demand, being oversubscribed by approximately 6 times, with total demand exceeding €1.2 billion [5][8]. - Over 80% of the allocation was made to long-only accounts, primarily from Spain, the United Kingdom, and the United States [5]. Group 3: Strategic Implications - The CEO of Neinor Homes highlighted that this transaction is a significant milestone, providing capital to accelerate growth in a structurally underbuilt residential market in Spain [6]. - The Deputy CEO and CFO indicated expectations to roughly double profits over the next five years while only increasing the share count by 20%, showcasing the deal's accretive nature for shareholders [6]. Group 4: Company Overview - Neinor Homes is the leading residential property developer in Spain, with a land bank to develop approximately 12,000 homes and a gross asset value (GAV) of €1.5 billion as of December 2024 [7]. - The company operates a fully integrated residential platform covering the entire development value chain, committed to delivering attractive risk-adjusted returns through disciplined capital allocation [9]. - Neinor has a multi-sector strategy, including Build-to-rent (BTR), Build-to-sell (BTS), and senior living rental markets, which are largely untapped in Spain [10]. Group 5: Market Position and Outlook - Spain's residential market is characterized by strong supply and demand fundamentals, with one of the lowest ratios of new supply per capita globally since 2013, making it an attractive market for investment [12]. - The company has a five-year business plan launched in March 2023, which includes a €600 million shareholder remuneration plan and a €1 billion investment in new land acquisitions [11].