In December, he resigned from the board of Spain's largest property developer, Metrovacesa, because of a possible conflict of interest that would arise from his presence on the boards of both Inmocaral and Metrovacesa. The little-known Inmocaral plans a complex, three-part capital increase to help finance the deal, which will include a tender offer, at the same price, to all shareholders. The resulting company will have market capitalization of about euros 7 billion ($8.8 billion), making it Spain's second biggest listed property business after Metrovacesa.
Colonial also has a presence in France. Two years ago it paid euros 1.5 billion ($1.9 billion) for control of Societe Fonciere Lyonnaise, a listed property fund specializing in commercial rental stock in Paris.
Inmocaral is building its rental and high-end residential portfolios through acquisitions. The planned takeover of Colonial will transform the company from a developer to a manager with important fixed assets in Madrid, Barcelona and Paris.
Portillo is expected to roll about euros 800 million ($1 billion) worth of the assets from his other companies into the group in return for some of the new shares to be issued under a proposed euros 2.69-billion ($3.38-billion) capital increase.
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