The Azora group decided to give a shot in the arm to its listed real estate investment vehicle known as Hispania Activos Inmobiliarios. Azora created a new affiliate in shape of a Socimi (Spanish REIT firm) to enjoy the tax incentives. The new spin-off´s name is Hispania Real Socimi and it has already sealed its first transaction.
The newly established Socimi informed the CNMV (Spain´s Stock Exchange Commission) about an acquisition of 213 houses comprised by the Isla del Cielo residential complex found inside the Parque Diagonal Mar park in Barcelona. The package was sold by Santander Banif Inmobiliario in an off-market transaction which hit the total of €63.8 million paid out from Hispania´s own funds. The vehicle floated at the beginning of March with €500 million in pocket. It is held by such big name investors as George Soros, Paulson or Fidelity.
The purchase included 237 parking spaces situated below the ground level of the complex. The Isla del Cielo residential complex comprises two towers (a 17-storey Torre A encompassing 104 houses and a 21-storey Torre B with 150 dwellings) offering the underground parking lot.
The complex also disposes of gardens and an exterior swimming pool. Its total area covers approximately 38.000 m2, the underground part included. Occupancy rate of the houses posts 90% and all of them are rented.
Diagonal Mar is located in the seafront in Barcelona, at the beginning of the famous Avenida Diagonal Avenue. It represents the utmost develpment in property terms across the city. The area offers a 88.000 square meter business zone, one of the oldest shopping malls in Catalonia, 68.000 square meters of office space, several hotels, the second largest park in Barcelona (14 hectares) designed by Enric Miralles where the Isla del Cielo precisely lies.
Hispania Activos Inmobiliarios announced its first purchase in mid April when together with another company from the group it acquired the Hotel Guadamina in Marbella for €21.5 million.
Azora that holds 2.2% of Hispania has initially ruled out the possibility of converting its vehicle into a Socimi as it sought greater flexibility.
Original article: Cinco Días (by David M. Pérez)
Translation: AURA REE