Testa is a leading Spanish company in the residential rental market in Spain. Santander, BBVA, Merlin Properties and Acciona Real Estate own 99% of the company's capital. BBVA accepted to sell its stake 25.24 percent in Testa after Blackstone submitted an offer to buy 100 percent of the company.

Testa went public in July and got listed in the Alternative Stock Exchange (MAB). Since then the company has been drawing increasing interest from investors. The signing of the Blackstone transaction comes at a time when market prospects are good, following the conclusion of the company's consolidation phase, which resulted in the creation of a single asset portfolio and an item management platform.

The transaction announced today is still pending but is expected to become final sometime during the fourth quarter of 2018, and is subject to authorization from the competition authorities and compliance with the share transfer restrictions set forth in the shareholder contract. According to BBVA estimates, the sale will have a positive impact on its P&L Account and its capital ratio.

In September 2016 Merlin and Metrovacesa merged the real estate businesses. As a result, Santander, Popular and BBVA became shareholders of Testa. In mid-2017, BBVA took part in a non-monetary capital increase of the real-estate firm, contributing about 1,500 housing units. The sale of BBVA's stake in Testa is the latest in a growing string of milestones in its strategy to reduce its exposure to the real estate sector.

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BBVA - Banco Bilbao Vizcaya Argentaria SA published this content on 17 September 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 17 September 2018 23:57:01 UTC