TPG reconsiders the sale of their REIT, Témpore Properties

Before the bearish outlook took place Témpore closed 2021 with 3,000 homes valued at 400 million euros. TPG is now reconsidering the sale of Témpore Properties due to the uncertainty in the market related to increasing interest rates and inflation. TPG hired Eastdil Secured to search for potential bidders interested in buying Témpore Properties, specialized REIT in Build to Rent currently listed in BME Growth. Months after the beginning of the process, TPG is now analyzing if they should continue in selling Témpore Properties or hold on until market fears calm down.

According to the latest data available Témpore has a portfolio composed of 3,000 rented homes, the majority located in metropolitan areas within the largest Spanish cities. This portfolio was valued at 400 million at closing date last year. Even though the sale process has attracted the interest of various investors, the fear of a possible recession during summer and the difficulty potential buyers have when looking for financing has put downward pressure to the prices in the offers.

TPG started in Témpore in Summer 2019, when TPG acquired 75% of Témpore Properties stock from Sareb for 103 million euros. At that moment, Témpore had 2,200 homes in its portfolio dedicated to BTR.

Sareb constituted Témpore in November 2017 aimed for its Build to Rent strategy and later listed the REIT in 2018 to raise capital and in the process be a minority shareholder. At the end of last year, Sareb sold the remaining 20,3% of the stock it owned to TPG for 30 million euros.

Apart from the sale of Témpore there are other transactions in the market, such as Neinor´s sale of 1,500 homes for 400 million euros. Last month, Neinor announced that it was in preliminary conversations with a group of potential investors. Additionally, Nuveen is in search for a third investor for a BTR scheme that is managed together with Kronos.