21 April 2017 – Ok Diario
Renta Corporación, the real estate company chaired by Luis Hernández de Cabanyes, created a Socimi back in October 2016, which has remained completely inactive until now. The vehicle was constituted with the aim of sounding out the market – which is why its launch was barely publicised – and in the event of finding opportunities, taking advantage of them. Nevertheless, according to market sources, a Dutch pension fund is now going to invest €125 million in the Socimi’s real estate portfolio.
The aforementioned Dutch pension fund has already signed a 10-year contract with Renta Corporación, through which it will pay the real estate company around €3 million per annum to manage the fund. (…).
With this move, Renta Corporación, which will hold its General Shareholders’ Meeting next Wednesday (26 April), hopes to benefit from the progressive recovery of the real estate sector, following the major crisis that property, in general, has suffered since 2008. In fact, the company has seen its share price rise by 8% (cumulative) so far this year.
And that increase has come despite the fact that the company’s results for 2016 were not as good as had been expected. Renta Corporación generated profits of €4 million last year, less than half the figure recorded a year earlier. Moreover, its revenues decreased by 46% and its margins fell by 8%. Furthermore, its debt balance rose to exceed €21 million.
In this regard, it is worth remembering that Renta Corporación emerged from bankruptcy just three years ago, a status that prevented it from trading its shares from almost a year and a half. (…).
Original story: Ok Diario (by Borja Jiménez)
Translation: Carmel Drake