The Socimi Promorent Being Sold on MAB for 1.45 Euros per Share

The Socimi Promorent´s price on the MAB (Alternative Stock Market) today is 1.45 Euros per asset. It is the second Reit company debuting on the market, after Socimi Entrecampos which was first launched on November 28th.

Promorent Socimi S.A. was established in 2012 and it belongs to the family group Pavón Olid, an old shareholder of the companies such as: Cambios Sol (now called Money Gram), Sol Telecom and a tourist bus Madrid Vision firm, Sol Open Tour, and is estimated to be worth between 5.1 and 6.5 million Euros.

Jose Pavón Olid is a shareholder of a patrimonial company, Marqués de Arlabán, situated in Madrid. He is the only administrative of many firms, among which Minas Paramesa that extracts clay and gravel, to be highlighted; Checkpoint Sol Seis, a monetary intermediation company; a cosmetics´firm Dermocosmética Gramjeña, company Aval Plus and real estate property.

The property of Promorent constitutes houses, commercial locals and building lands. The registered advisor that serves the company is Armabex Asesores Registrados and the office, Ashurst, the group set up by  Ismael Fernández Antón, the real estate partner; Javier Hernández Galante, the fiscal partner and Javier Mateos, the senior banking partner. The liquidity provider is Cortal Consors, from the BNP Group.

 

Source: Expansión

Office Buildings for Sale and Rent Within the M-30 Ring Road

The zone covers 50.7 square meters or 8.4% of the total extention of the capital. It is the very center of Madrid and the M-30 determines the zone´s outreach. It is also where the majority of companies desire to settle in.

Before the crisis, prices soared so much that many of them had to abandon the zone, moving towards the perypheries. (…).

In the center there are over 400 empty buldings and more than 500 building lots. A research made by the San Pablo University in Madrid (CEU) estimated that the value of the real estate assets is equal to 12,000  million Euros, with an extention of 630,000 square meters, which is half of the space covered by the Retiro Park.

(…). Many of the assets require a reform, but if you think of changing your premises location, you should know that many buildings are practically new, equipped with office furniture and all the amenities.

The price for a square meter has dropped significantly by about 40% since 2008, however not so much in the prime zones which resisted the crisis´s impact. The experts claim that the non-residential sector has reached the bottom and they augur the 2014 as a year marked by changes.

Source: Expansión

Entrecampos: the Socimis Can Drive 5% Profitability

From the family business dating 50 years back to the leading Socimi operating in Spain. This is the journey of the group controlled by the Segura Rodriguez family who set up Entrecampos Cuatro, the first real estate investment trust (Socimi) in Spain.

It has been in the marketplace since 1958 and its offices are scattered all over Spain and there is one in Berlin.

¨First, we sold assets and kept some for ourselves to rent them. In 2000 we decided to promote assets for rent exclusively. We have got entire buildings and some property in bulk¨ informes Ignacio Segura, the CEO of the company. Ignacio and his siblings: Carlos, Clara and Lourdes, control about 96% of the capital. The remaining 3.74% is divided among 29 other shareholders.

Entrecampos Cuatro began its career as the first Socimi on the stock market on 28th November (precisely on Spanish MAB – Alternative Stock Market). (…)

¨We have separated the assets which were not valid for a Socimi and now our portfolio contains 100% rent¨ says Segura.

The company debuted with the value of 1.59 Euros per asset. The second one, Promorent, was launched yesterday. (…)

The firm was estimated to be worth 86,9 millon Euros. Its asset portfolio´s value reaches 102 millions. 36.8% of the properties are office spaces, 29.5% houses and 19.6% locals. Most of them are situated in Madrid (53.9%), Zaragoza (18.6%) and Berlin (12.5%). “All the property is for rent and 87% of the space is occupied” assures the Director.

Shareholders

The Seguros reckon that the Spanish Reits will be a long-term success. “A small shareholder might be interested in investing in Socimi because of the security of sharing the benefits. And they will be always present if shares are well maintained” says Segura.

“The profitability from the rent can turn to be 4 – 5%” adds his sister and chairwoman. “We want the other patrimonies similar to ours to incorporate in the company.”

Thus, they do not rule out alliance with other Socimis, although without loosing the ´family business´identity.

 

Source: Expansión

Sareb: There Are 100 Funds Interested in Our Assets

Walter de Luna, the CEO of the Asset Management Company for Bank Restructurings (Sareb) said yesterday in London that the competition between the great funds to invest in the real estate market might enable the property prices to climb back up.

¨We have started to observe good signs announcing upcoming rise in property prices in the nearest future.¨ told the Expansion De Luna while in London at the meeting with international investors. ¨The latest data reporting surge of the housing prices in Madrid and the Balearic Islands points out a recovery, as the engine of the sector is usually driven by these provinces. And in the process of Sareb´s assets selling we also notice growth in other properties´prices¨.

 The Director believes that the establishment of the so-called bad bank joining loans and the property of nationalized entities for the subsequent sale revives the market. According to De Luna, ¨By raising attractive transactions, Sareb has served as a catalyst for the investors´demand. There are around 100 funds competing for the sales portfolios.¨

The Sareb´s Director particiated in the meeting on investments in Spain organized in the capital of the United Kingdom by the law firm Clifford Chance. About 200 managers, analysts and bankers were present there as well. On Monday and Tuesday the Director met with representatives of the funds like Apollo, Blackstone, OakHill and Orion Capital.

Since 2013, the first year of Sareb´s existence, this semipublic entity  has invested 2.000 million Euros in the assets sales. (…) The executive director of the Dutch bank ING, did not want to express his foresight about the operations´volume at the end of the exercise because of many ongoing transactions.

Alfonso Benavides from Clifford Chance said that ¨even though the volume of Sareb´s activity on the overall market is still relatively small, its contribution helped to activate the market, set the reference price up, attract investors´attention and  give way to implement other transactions.¨ (…)

Walter de Luna assures that he has spotted no traces of fear of doom and gloom times or an additional collapse of the real estate sector in Spain. (…).

Source: Expansión

The Regions Invest Mere 11% of the Amount Foreseen for Property Sales

Each year the history repeats itself. The communities state that they will allot specific amout of money to the property sales but at the end of the year they barely reach the minimum percentage of the amount declared. In 2009, the independent budgets deposited 1.960 millions for the section 6 of the disposal of real estate investments. They managed to reach 9% of the amount. The following year they deposited 1.373 millions and covered 19.9%. There are 2.569 millions predestined for the exercise. It is the biggest amount of money in the history. By September, the collection is reaching only 11.5% of the 295 millions predicted initially. (…)

The problem constitutes the link between public expenditure and the revenues. If the lattest are lower than expected, the deficit arises. This is what precisely occured in all the Administrations at the first days of crisis, when the surplus equal to 20.748 millions in 2007 turned into a deficit of 116.429 millions 24 moths later. (…)

The last time the regions fulfilled their declarations about the deposit for real estate sales was in 1997. (…)

Out of the 2.569 millions that the communities expected to spend on the disposal of real estate investments this year, 34% belongs to Catalonia and another 32% to the Community of Madrid. Althought Catalonia has reached 20.8% by now, it is expected to sell more properties by the end of the year.

At the moment, the only community that easily fulfilled its estimations was Castilla and León. It deposited 20 millions for the disposal of real estate investments and earned 34.6 millions. Interestingly, the Balearic Islands chose not to include the disposal of real estate investments in its annual budget at all and in spite of this made up to 662 millions in sales of the property. The entrance of these unexpected resources explains why this community has not registered deficit at the end of the exercised period.

Overally, the debt of the autonomous communities reached 1% by September and it is gradually approaching the limit of 1.3% at present. (…) What is more, one shall take into account that the President abolished the extra pay for officials in December 2012, which allowed the independent communities to save about 3.300 million Euros. With this precedent, the budget deficit target seems likely to fail.

The President has already sent notifications to Catalonia, Andalusia, Murcia, Autonomous Community of Valencia about the risk of crossing their limits. The Mister of Finance urges these communities to provide  the foreseen adjustments for the next year. (…)

It is surprising to find Madrid in this group, as the region usually performs well. In the first 9 months of the year it accumulated deficit of 1%, which practically covers the annual target fixed in 1.07%. (…).

Source: Cinco Días

Government Permits the Reclassification of the Oficially-Protected Houses into Saleable if for Rent

In order to fight for the decline in number of the empty houses all over the country, the government decided to grant a permission to requalify some of the officially protected houses and destine them for rent.

“The houses which have received any type of aid or public benefits cannot remain uninhabited. They must fulfill the role they have been constructed for.” defends the resolution the Secretary General of the Department of Transport, Carmen Librero. She also reminded that the competency of execution of the order of lays in hands of the communities´ administrative bodies, including city councils.

In this regard, she also recalled one of the principal measures approved by the Executive Director in the Royal Decree on State Plan for Development of the House Rental, Building Refurbishment and the urban regenerations and renewals for years 2013-2016, which was accepted in April this year. The document described in details the proceedings that must be taken to convert the mentioned houses into legally inhabitable units.

“In this way, the empty officially protected houses that do not encounter a purchaser might benefit from the boost in the market. The rent of the houses will enhance the principles of flexibility and promotion of the house rental, now supported by the imminent entrance of the state aids together with the new State Plan for Development of the House Rental 2013-2016.” stated Librero. (…)

The Ministry of Development is now working on creating a data base which will allow to classify the houses in regard to their officially-protected status.

The Government will also take into account the research information provided by the Ombudsman and reports of the Senate Special Committee on the study of the new forms of social exlusion as a consequence of the rise in unemployment. (…)

Source: Finanzas.com

Quabit Reduces Debt by Selling Properties to the Bank for 828 Million Euros

When 143 assets converted, the liability of the real estate will be reduced about 60%.

In order to restructure its debt oscillating around 828 million Euros, Quabit, controlled by the Rayet Group, has come to an agreement with its financial institution after 2 years from the burst of ´the real estate bubble´. This is its fourth restructuring since that time (first in 2008, 2010, 2011 and the one in present).

The refinacing will include significant reduction of its liabilities throught the assets´ sale-and-purchase actions. The strategy proved to be successful in 2012 when they managed to convert 360 millons from the debt deriving from the properties equal to 1.300 millon Euros.

Although there is no official announcement from Qabit, it is said to transfer 143 assets already comitted to its bank creditors. The operations will be formalized at the turn of the year. Thanks to these agreements Quabit will reduce 60% of its debt.

The news was warmly welcomed by the investors and the price of real estate share has increased by 5.34 % up to 0,138 Euros.

Source:  Expansión

Turn in Sareb´s Strategy: Investments to Bring The New Developments´ Construction to an End

The bad bank, Sareb, takes a next step and evaluates the comercial viability of over 100 developments. The units are currently under construction, either in a very advanced state or almost finished. The company is considering investing in their completion or, alternatively, selling them in their present state or keeping them in stock.

Social information sources dismissed the demolition as an option but still circumscribe it as a future opportunity. Sareb has contracted independent experts to provide the evaluation to it, using the audit of its entire profile suggested by the troika. The examination will take into account susceptible aspects which might influence the prices such as possibilities of the dwellings´ rapid sale according to the attractiveness of the zone they are located in. 6% of the developments is under construction, 33% is the construction site and the remaining 61% is the completed units.

It is said that during the 15 years of the course the bank will deposit 13. 600 million Euros. Acting this way it is following the steps of other bad banks, like its Irish colleague Nama which started the demolition of the so-called ´ghost cities´ in summer 2012. The construction of countless properties began to be carried out in almost deserted zones due to the construction fever and now there is not way out in terms of sale.

The sources of the real estate sector maintain that it is easy to see this kind of situation in Spain. Since the times of ´the Uprising´ multiple properties with ´the appeal of a beach´ but situated 50, or even 100 kilometers from it have been constructed and most of them belong to Sareb.

Source: El Economista