Socimis Knock On Retail Investors´Doors

Perhaps the year 2014 will mark the end of price slump on the real estate market. International investors turn their eyes on Spain again and the recent example of the Pimco´s investment shows that also individual buyers can enter on the stage.

Spanish Socimis have been inspired by the REIT companies, known all over the world as listed vehicles focused on raising yield of housing lots via lease. About 80% of all their assets are intended for renting. The most attractive aspect of investing in a Socimi listed on the stock and the alternative stock market (MAB in Spain) is that revenues from sales are free from taxes, just the dividend-reception one is ought to be paid-off.

(…) As Luis Giménez from BNP Paribas Wealth Management highlights, “required contribution is minimal and is equal to a share´s cost”.

The Socimi Lar España Real Estate scheduled to be unleashed on 6th March, will bring at least 12% gains to its shareholders. The €400 million that will be raised from shares´sales will be destined for buying real estate property for rent. (…).

Another Socimi gearing up for flotation, Hispana Activos Inmobiliarios, created by Azora fund management, lacks only approval from the CNMV. It is said to be targeting at €500 million capital.

In turn, Entrecampos and Promorent that are already present on the stock market, belong to family offices that use them as vehicles to exploit their real estate asssets. (…)

The vehicles of Azora and Lar will be listed on the continuous market and that means more transparency and liquidity, let alone security of professional care cast over the assets. (…).

The largest Socimi in Spain will be in hands of Unibail-Rodamco, the biggest listed real estate company in Europe. Its Spanish division filed for being converted into a Socimi. Its portfolio includes 16 huge shopping malls in Spain (La Vaguada and Parquesur in Madrid among others). Surprisingly, the Spanish REIT company will not appear on the MAB but on… the stock market in Paris. (…).

Upcoming great operation will involve a Socimi being forged by Banca March and Deutsche Bank in order to make over a thousand offices sold by BBVA in 2009 profitable. (…).

Original article: Cinco Días (D. M. Pérez/M. M. Mendieta)
Translation: AURA REE

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Translation/Summary: aura