HISPANIA COMPLETES THE SECOND PHASE OF THE TRANSACTION WITH BARCELO AND REACHES AN AGREEMENT TO ESTABLISH ITS FINAL STAKE IN BAY AT 76% Acquisition of 5 hotels from Grupo Barceló adding a total of 2,151 additional keys Hispania reaches an agreement to fix its final stake in BAY at 76%, thus cancelling Grupo Barceló s option to increase its stake to 49% Madrid, December 14 th, 2015.- Hispania has executed, on schedule, the Second Phase of the deal signed in April 2015 with Grupo Barceló, by which it was agreed to contribute 5 hotels to Bay Hotels & Leisure, S.A. (BAY). After executing the relevant options, BAY has acquired the four star category hotels Barceló Fuerteventura, Barceló Castillo, Barceló Margarita, Barceló Lanzarote, situated in the Canary Islands and the Barceló Pueblo Park, situated in Mallorca. With the completion of this transaction BAY is now owner of 16 resort hotels with a total of 6,097 keys spread throughout the main tourist areas of the Canary Islands, Balearic Islands and Andalusia, as well as two shopping centres. Bay has subscribed the respective lease agreements for each hotel with Grupo Barceló. In context of this transaction, Hispania and Grupo Barceló have agreed their final stakes in BAY at 76% and 24% respectively, thus cancelling Grupo Barceló s option to increase its stake in BAY to 49%. The valuation at which Hispania has acquired its 76% stake in BAY amounts to 458.6 million euros which includes refurbishment capex worth 25.2 million euros, which represents a higher refurbishment capex than originally contemplated, with the purpose of reinforcing the portfolio s repositioning. The acquisition has been financed through a capital increase in BAY subscribed by its current shareholders and the draw-down of the second tranche of the financing provided by a syndicate of Banks. Hispania s equity investment to complete the full transaction and establish its final stake in BAY at 76% has amounted to 186 million euros. As of today, after the full draw-down of the financing of 234 million euros (64 million drawn at First Phase and 170 million euros at the Call Option s execution) and the completion of the acquisition, BAY has a total adjusted net cash position of 12 million euros. After this transaction, Hispania has more than 9,000 keys, being the REIT with the largest exposure to the Spanish hotel market with special emphasis on resort hotels, one of the best performing sectors in the Spanish economy.
Assets acquired through the Call Option ASSET NAME LOCATION TOTAL KEYS Barceló El Castillo Caleta de Fuste (Fuerteventura) 480 Barceló Fuerteventura Thalasso Caleta de Fuste (Fuerteventura) 486 Barceló Lanzarote Costa Teguise (Lanzarote) 426 Barceló Las Margaritas San Bartolomé de Tirajana (Gran Canaria) 484 Barceló Pueblo Park Playa de Palma (Mallorca) 275 Shopping Centre Fuerteventura Caleta de Fuste (Fuerteventura) n.a.
Barceló Fuerteventura Thalasso Barceló Castillo Beach Resort
Barceló Pueblo Park
About Hispania Hispania became listed on the Spanish Stock Exchange on the 14th of March of 2014 and as of today it has raised 861 million. Hispania s current portfolio includes 128,000sqm in offices, 684 dwellings and 9,032 hotel rooms. Hispania s goal is to capture investment opportunities in the Spanish Real Estate markets and creating a portfolio of high quality assets in the residential, hotel and offices sectors. Hispania is part of the EPRA Index, Ibex Small Cap Index, GPR Index and Euronext IEIF REIT Europe Index. In accordance with best corporate governance international practices, Hispania s Board of Directors, chaired by Rafael Miranda, has a majority of independent Board Members. Hispania is externally managed by Azora Gestión S.G.I.I.C., S.A., which has granted it total exclusivity for all of its investment deal flow in Spain, except for student housing. About Barceló Barceló Group is a family owned Company with more than 80 years of history, focusing on the tourism industry as a truly integrated hospitality player, active across the whole hotel value chain. Barceló Hotels & Resorts, the hotel division of the Group, represents one of the leader hotel operators in Spain, and is included within the 35 main global hospitality companies. Currently Barceló has more than 140 hotels and close to 38.000 keys throughout 17 countries in EMEA, the Caribbean and Latin America. 98% of the Group s portfolio is comprised of 4 and 5 star hotels; Bacerló focuses on the quality of the product and the high segment of the market, being one the main company s objective maximizing client s satisfaction. The Group also has a travel agency division, with close to 700 branches in Spain and more than 100 additional travel agencies on a global basis. Barceló Viajes is since 2012 a vertically integrated group, present in all level of the hotel sales value chain, through its three tour operator brands: lacuartaisla, Quelónea and Jolidey. The company also owns its own airline, Evelop!, which offers regular flights from Europe to the Caribbean. The complementary nature of the hotel and travel divisions, together with the geographical diversification, the management of a balanced portfolio, an efficient risk control policy and a solid financial capacity, make the Barceló Group a stable and sound profile company. Currently the Barceló Group has more than 24,000 employees globally. In 2014, the Group recorded more than 2,000 million euros of revenues, with double digit growth rates both for the hotel and the travel agency divisions. Finally Barceló has announced the opening of hotels in Madrid, Barcelona and Tenerife within Spanish, and in Mexico, Algeria and Berlin on a global basis. About Azora Grupo Azora (hereinafter Azora ) is a leading Spanish independent asset manager, founded in 2004 and with over 3,000 million of assets under management. Azora manages Hispania through its subsidiary Azora Gestión S.G.I.I.C., S.A., a regulated asset management company under the supervision of the Spanish Stock Exchange regulator (CNMV). Azora s platform is one of the largest in Spain, with a team close to 300 professionals with extensive experience across the Real Estate value chain, including deal origination, structuring and investment, new developments and repositioning, asset and property management as well as disposal of individual assets or portfolios. Azora is specialized in four assets classes: residential (Azora manages the biggest portfolio under rent in Spain, with 12,391 dwellings), student housing (also managing the biggest portfolio in the country, with 8,530 beds) and the biggest hotel portfolio under rent in Spain, with 10,513 rooms.
FOR FURTHER INFORMATION: Hispania s Press Room: Noemí Sánchez: noemi@irazustacomunicacion.com Nacho Miquel: nacho.miquel@irazustacomunicación.com +34 91 563 41 79 Hispania s Investor Relations: Isabel Troya: isabeltroya@azora.es Pilar Vico de Haro: pilarvicodeharo@azora.es Tfno.: +34 91 310 6370