Aggregate sells Portuguese unit to focus on Germany
The mainly Germany-focused property investment company Aggregate Holdings is to sell its subsidiary VIC Properties, one of the largest real estate developers, in Portugal in a €670 million deal.
The company is to be acquired by a consortium led by the institutional investors AlbaCore Capital Group, Mudrick Capital Management and Owl Creek Asset Management as well as the existing VIC management team.
Aggregate and the consortium have signed a binding agreement for the sale of 100% of the share capital of VIC Properties. The deal is part of Aggregate’s strategy to simplify its capital structure and asset base, and refocus on Germany.
Aggregate Holdings had €7.9 billion of assets and a project portfolio with a GDV of €10.2 billion at the end of H1 2022
The deal will reduce Aggregate’s consolidated net debt by more than €670 million upon the closing of the Transaction.
VIC has three projects under its ownership: Prata Riverside Village and Matinha, located on the Lisbon waterfront, and Pinheirinho, located near Comporta. The three developments have a combined total gross floor area of 570,000 sq m and, once fully licensed and developed, will provide about 3,000 new apartments for the city of Lisbon.
The Transaction is expected to close in the second quarter of 2023 and is subject to closing conditions.
Aggregate said the transaction demonstrates the increasing interest in Portugal as an investment market for international.
“With this transaction, Aggregate has successfully sold VIC Properties, Portugal’s leading residential developer, at a premium to net tangible book value, while simultaneously reducing its total debt and re-focusing fully on Germany,” said Aggregate CEO Cevdet Caner.