8/05/2014 – El Confidencial
Exactly one week ago the deadline passed for the shareholders of Bankia´s real estate fund to decide whether they wish to reimburse or transfer their investment. The bank´s director, Jose Ignacio Goirigolzarri, is going to launch a new trust on the stock market, baptized as Bankia Monetario Deuda III. Moreover, he set his final target at exclusive ownership of the vehicle.
In order to dodge intrusion, Goirigolzarri has modified the vehicle´s policy with €1 million minimum investment obligation including subscribtion commission and a 5% repayment.
By converting the property fund into a Socimi (Spanish REIT firm), Bankia will follow the suit of Banco Sabadell which took this decision two weeks ago. The bank considers as an alternative creation of a listed firm similar to Hispania. Goirigolzarri´s bank has also hired JP Morgan as an advisor at retail sales.
“Socimis are attractive in terms of tax benefits, as well as funds, but the regulatory requirements for them are much lighter than those imposed on the Collective Investment Schemes” (or IIC by their acronym in Spanish), sources from a large servicing firm indicate.
Why to undersell the assets to foreigners when the advantage could be taken by Spanish property market?
Presently, Bankia´s real estate fund manages a €281.56 million worth of assets but its profitability shows poor -11.7%. Other banking funds at the verge of extinction are as follows: Santander Banif with €1.9 billion real estate, Sabadell Inmobiliario with €930 million, Segurfondo Inversión with €266 million, AC Patrimonio with €93 million and CX Propiedad with €64 million.
Original article: El Confidencial (by R. Ugalde & C. Hernanz)
Translation: AURA REE