Portfolio
Renta Corporación
| Sector | Industrials |
|---|---|
| Investment type | Growth Capital |
| Region | Spain |
| Status | Former investment |
Nature of Business
Renta Corporación is an international real estate group specialising in the acquisition, added-value transformation and sale of real estate properties in prime locations of major cities. The company has been quoted on the Spanish stock exchange since April 2006.
Renta is present in Europe – in Barcelona, Berlin, London, Madrid and Paris – and the USA, in New York, all cities which share common features of size and liquidity.
Its principal customers are developers looking for assets to develop their building projects, asset managers (investment funds, family offices, insurance companies, financial entities, large corporations, etc.) looking for high yield assets or assets for medium term investment and end users such as companies looking for head office buildings or offices, hotels, fitness centres, etc.
Investment Overview
3i’s Spanish team identified the opportunity to back fast-growing Renta in 2004. We invested €20m of Growth Capital, allowing the company to increase its acquisition activity and build profitability. In addition 3i’s network of contacts and strong brand increased Renta’s credibility in the corporate market, a useful precursor to a planned IPO.
During our investment we supported Renta by introducing several independent directors and helped establish an audit committee to improve corporate governance. This was a key step in preparing the company for IPO.
We supported the IPO of Renta Corporación, our first on the Madrid Stock Exchange, in 2006. The IPO valued Renta at c€700m, delivering proceeds of €63m, a money multiple of 3x and IRR of 142%.
