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Optimum RE Debuts On MAB With A €50M Residential Portfolio

28 September 2016 – Idealista

Optimum Re Spain is set to debut on the Alternative Investment Market (MAB) today (28 September). (…).

According to its market entry document, Optimum currently owns a portfolio of 14 residential buildings located in prime areas, which also receive high numbers of tourist visits. 13 of the buildings are located in Barcelona and the other one is in Madrid. The Socimi has also signed a purchase commitment to add another property to its portfolio on 31 October, located in the Catalan capital. These buildings comprise 186 flats in total and 30 commercial premises.

The document also reveals that the Socimi has paid €57 million net for those 14 properties, although their market value is estimated to amount to €108.4 million, using prices per sqm from specialist online portals such as Idealista as the benchmark. Moreover, their average occupancy rate is 75%.

The company’s strategy is to acquire entire residential buildings and then to sell them off subsequently, flat by flat, to obtain greater profits. “The company’s aim is to offer profitable investments with controlled risk and an absolute return based on a rising market driven by economic recovery: rental income and capital appreciation are being generated on the basis of selective acquisition and active management of the residential properties in Barcelona and Madrid”, said sources at the company.

The company added that, “we are diversifying our property portfolio, focusing on central areas, with a special emphasis on prime areas such as Sarriá, Eixample and Ciutat Vella in Barcelona. Similarly, we invset in mid-range areas with high demand and in tourist areas, such as the popular Gracia area in Barcelona”.

The company also admitted that its main business involves buildings, which are leased out partially or in their entirety, and that it has a limited exposure to commercial premises. “Optimum’s approach involves seeking out purchase transactions at below market prices, obtaining discounts of approximately 20%, acquiring entire buildings and, after making an investment to optimise the homes and after leasing them for 3-4 years, selling them flat by flat in order to increase the sales price”, it added.

Who are its shareholders?

This Socimi is backed by several companies, such as BMB Investment Management, Anangu Grup, Orca Invest, Finicon and Body of Knowledge, along with more than fifty minority shareholders.

And those companies are in turn owned by Catalan investors and businessmen, such as for example, the Gallardo family, owner of the pharmaceutical firm Almirall, and Ángel Javier Mirallas, Head of Prosegur in Cataluña and Chairman of the Brazilian Chamber of Commerce in the autonomous region. Other shareholders include: Joan Plensa, a relative of the Catalan sculptor Jaume Plensa, and Marc Sabe Richer, Director of Fujitsu in the UK. Josep Borrell Daniel is the Chairman and CEO of Optimum Re Spain – he is a professional investor who leads the firm BMB Investment Management.

With Optimum’s debut on the MAB, there are now 24 listed Socimis in Spain, with the Socimi Keka expected to join the ranks soon. That company manages a portfolio of commercial premises and garages in Madrid, Barcelona and Sevilla, worth €14 million and is owned by two members of the Borbón family.

Original story: Idealista

Translation: Carmel Drake

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