The purpose of this credit facility is the purchase of urban plots of land for residential use, preferably in Madrid and its metropolitan area

Quabit signs a binding term sheet for the granting of a credit facility for an amount up to SIXTY MILLION EUROS by certain funds advised by Avenue Europe International Management, L.P

The signing of this credit facility is contemplated within the framework for the financing of new investments established by Quabit in its 2015-2020 Business Plan. 

The Company informs that, on December 13, 2016, it has signed a binding term sheet for the granting of a credit facility for an amount up to SIXTY MILLION EUROS (60,000,000 €) by certain funds advised by Avenue Europe International Management, L.P. (“Avenue”).

The purpose of this credit facility is the purchase of urban plots of land for residential use, preferably in Madrid and its metropolitan area.

The most relevant terms of the agreement are as follows:

  • The drawdowns of this credit facility will finance 70% of the acquisition of the plots. The remaining 30% shall be financed by Quabit.
  • The drawdowns shall be effected during the first year of duration of the agreement, with the repayment of the drawdown amounts being contemplated at the maturity, after 4 years, of the credit facility, contemplating the possibility to: (i) conduct advance prepayments and (ii) reuse the funds to conduct new investments.
  • An indirect subsidiary fully controlled at 100% by Quabit shall be incorporated for each of the projects to be financed.
  • Interest Rate: the applicable interest rate will be 16% over the drawdown amounts.
  • Warrants: Avenue shall be granted warrants over shares in Quabit which shall allow it to reach a stake of up to 6% in the share capital of Quabit, through the subscription of new shares in several tranches: (i) during the first two years of duration of the agreement the average subscription price shall be of 3.25 € per share and (ii) during the last two years of duration of the agreement, the average subscription price shall be of 3.75 € per share. The use of the different tranches of the warrants shall be conditional on the drawdown amounts on the credit facility.


The signing of this credit facility is contemplated within the framework for the financing of new investments established by Quabit in its 2015-2020 Business Plan. 

Both parties have set December 28 as the final closing date to sign all contractual documentation developing this agreement further, date which shall mark the start of the term for the credit facility. When these contractual documents are signed, the Company shall publish a Significant Event notice informing about the entry into force of the agreement.