Testa Residencial SOCIMI SA completed the €207 million purchase of 1,329 of the 1,458 apartment units in Spain that it agreed to buy from CaixaBank's real estate subsidiary in March.
Testa will buy the remaining 129 apartments from BuildingCenter SA for €21 million over the next few months, subject to the fulfillment of certain conditions.
The 92%-let apartments are spread across 42 buildings, 66% of which are located in major Spanish cities including Madrid, Palma de Mallorca, Barcelona and Valencia.
Testa plans to register an estimated €8.5 million in annualized rental income from June 1 on the properties that have changed hands. Once the acquisition of the entire portfolio closes, the figure is expected to rise to €9.3 million, according to a release.
Additionally, the company obtained a €92 million loan to partially fund the deal. The loan comes with a seven-year bullet maturity and a roughly 1.6% interest cost with 100% hedging.
