Hispania Activos Inmobiliarios, launched on the stock exchange market by Azora, has included a surprising clause in its listing information and in the last point of the Regulation for Board of Directors. Namely, the recently listed firm presented a monetization strategy comprising portfolio liquidation throughout six years.
In fact, the point constitutes the reason why Hispania was registered as an investment company, not as a SOCIMI (a Spanish counterpart of a REIT firm): greater flexibility and better securities for its investors. In general, as a result Hispania raised over €0.5 billion at flotation.
Also, due to aforementioned reasons, Azora decided to compromise with the investors and allow them to decide whether they wish to hold a listed real estate company or prefer to liquidate their assets and leave with money.
The investment term will have been concluded in six years. Moreover, after being asked what they prefer to do, they will have another three years to receive their money for assets (if they choose such option) or… return to the listed firm. (…)
What is more, Azora promised to sell Hispania´s entire portfolio if the investors decide to do so. The listed company could, for example, invest in collateral assets, such as hotels. (…) Apart from the major flexibility, Azora ties its fees to possible profits of the investors. Thus, in case of the portfolio sale, revenues will depend on the money gained, not on the NAV (Net Asset Value). (…).
When the investors decide to stay in the listed firm, they will be also able to liquidate just a part of their assets and leave the other as a stock.
Original article: El Confidencial (Ruth Ugalde)
Translation: AURA REE