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Entrecampos: the Socimis Can Drive 5% Profitability

From the family business dating 50 years back to the leading Socimi operating in Spain. This is the journey of the group controlled by the Segura Rodriguez family who set up Entrecampos Cuatro, the first real estate investment trust (Socimi) in Spain.

It has been in the marketplace since 1958 and its offices are scattered all over Spain and there is one in Berlin.

¨First, we sold assets and kept some for ourselves to rent them. In 2000 we decided to promote assets for rent exclusively. We have got entire buildings and some property in bulk¨ informes Ignacio Segura, the CEO of the company. Ignacio and his siblings: Carlos, Clara and Lourdes, control about 96% of the capital. The remaining 3.74% is divided among 29 other shareholders.

Entrecampos Cuatro began its career as the first Socimi on the stock market on 28th November (precisely on Spanish MAB – Alternative Stock Market). (…)

¨We have separated the assets which were not valid for a Socimi and now our portfolio contains 100% rent¨ says Segura.

The company debuted with the value of 1.59 Euros per asset. The second one, Promorent, was launched yesterday. (…)

The firm was estimated to be worth 86,9 millon Euros. Its asset portfolio´s value reaches 102 millions. 36.8% of the properties are office spaces, 29.5% houses and 19.6% locals. Most of them are situated in Madrid (53.9%), Zaragoza (18.6%) and Berlin (12.5%). “All the property is for rent and 87% of the space is occupied” assures the Director.

Shareholders

The Seguros reckon that the Spanish Reits will be a long-term success. “A small shareholder might be interested in investing in Socimi because of the security of sharing the benefits. And they will be always present if shares are well maintained” says Segura.

“The profitability from the rent can turn to be 4 – 5%” adds his sister and chairwoman. “We want the other patrimonies similar to ours to incorporate in the company.”

Thus, they do not rule out alliance with other Socimis, although without loosing the ´family business´identity.

 

Source: Expansión