AEDAS Homes S.A.

M&A Activity • Jul 29, 2021

Acquisition of Aurea Homes assets

29 July 2021

Transaction description

AEDAS HOMES acquires Aurea Homes assets for a total transaction price of c.€50m

• AEDAS Homes has agreed to acquire a selection of Aurea Homes assets that includes 7 high-quality RTB plots and taking stakes in 8 WIP projects, representing up to 679 units.
  • A tailored, selective transaction structured in line with our land bank strategy of only high-quality, cherry-picked assets.
  • Strengthens the AEDAS platform in the north of Spain: Pamplona and the Basque Country.
• This bolt-on acquisition represents another step forward to achieve the goals in AEDAS's revised Business Plan.

Transaction rationale

• Perfect geographical fit: the acquired assets will complement and strengthen the AEDAS business footprint, especially in the City of Madrid and the North of Spain.
• Cherry-picked assets: all developments are in very dynamic areas with strong demand where AEDAS is currently operating and has deep market understanding.
• High-quality plots: the company is replenishing the land bank with 7 high-quality RTB plots with a total of up to 512 units. All are available for immediate launch (53% already have a building permit, and 71% have architecture projects completed).
• Addition and expansion of AEDAS Servicing Division: adding Aurea Home's know-how, contracts, teams and brands.

A step ahead in our New Business Plan

This bolt-on acquisition is part of the AEDAS €300m investment goal for the next 12 months

Aurea Homes at a glance

AEDAS HOMES acquires Aurea Homes assets for a total transaction price of c.€50m

• Aurea Homes is the homebuilding subsidiary of ACR Group, a construction company.
• The company has been active for almost 20 years and has delivered more than 6,000 units in aggregated figures.
• Aurea Homes manages the development of c. 1,100 units under partnership schemes, carrying out development services to the JVs.

Transaction structure

The transaction has been structured for AEDAS to acquire the following selection of assets from Aurea Homes:

• 1. Plots of land: a selection of Ready-To-Build plots (512 units) located in the city of Madrid (374 units in El Cañaveral sector), Pamplona (98 units in Salesianos and Entremutilvas sectors) and Seville (40 units in Mairena).
• 2. Works in Progress (WIPs): Aurea's stake in a selection of 8 WIPs and the associated development contracts. The stake in these projects amount to 167 fully-owned units located in Madrid (46 units), Pamplona (16 units), Vizcaya (31 units) and Valladolid (74 units).
• 3. Servicing Contracts & Team: AEDAS will subrogate into the project development contracts for all 8 WIPs.
• 4. Aurea Homes brands & websites: AEDAS will have full ownership of Aurea Homes brands and websites.

Excellent assets located in the AEDAS footprint

Total of 679 units, including 420 units in Madrid (62% of total)

6

Financial considerations

AEDAS HOMES acquires Aurea Homes assets for a total transaction price of c.€50m

• Cash payment of €48.7m by closing date (29 July 2021) and up to €5m to be paid at a later stage (part of the transaction price and assumed debt and capex related to acquired assets).
• The estimated overall cost for AEDAS Homes, considering the agreed price plus expected future disbursements for the acquired projects, comes to €53.7m.
• This acquisition has been conducted under the framework of the revised business plan and will be financially accretive for AEDAS shareholders.
• The transaction has been designed to boost the return on investment, given the assets' advanced progress levels and potential for rapid rotation.

Idilia Views (Rincón de la Victoria, Costa del Sol)