Bankinter’s Socimi Invests 61 Million in Its First Six Months as Listed Company and Already Owns Seven Assets

9 August 2017

Ores Real Estate Socimi, the real estate investment vehicle owned by Bankinter and the Portuguese real estate company Sonae Sierra, is about to complete its first six months as a listed company and has already closed deals in which it has acquired seven assets.

Though this company was launched on the Alternative Securities Market (MAB) on February 22 without owning a single asset, it has already invested 60 million euros in its first six months, 15% of the target until the end of 2018. This investment has gained the Spanish REIT ownership of a total area of 32,353 square meters, distributed throughout the Iberian Peninsula.

The most recent asset to be added to its portfolio is a 2,200-square meter supermarket located in Lisbon, which is operated by the Pingo Doce chain and cost €5.9 million.

In Portugal, the REIT also controls a roughly 5,000-square meter shopping centre in Braga, which was acquired for 5.7 million euros, and which counts the Media Markt chain as a tenant; and a nearly 12,000-square meter business park in Portimão (in the Algarve region), which cost 20 million euros and has nine tenants, including Worten, Burger King and Sportzone.

The other four properties that the company acquired are in the north of Spain. The first acquisition was two medium-sized parks: Artea (in Bilbao) and Galaria (Pamplona), at a cost of 18.7 million euros. Between them, they have a gross leasable area of 8,400 square meters and are leased to the sporting goods chain Forum Sport.

Ores also owns an asset in Oviedo, the Asturian capital in the north of Spain. It is a 2,715-square meter supermarket operated by Mercadona which cost 5.8 million euros.

The last asset in the socimi’s portfolio is in Sanlúcar de Barrameda (Cádiz). This is another supermarket, operated by the Aldi chain, with an area of 2,085 square meters, for which it paid 4.75 million euros.

What makes the real estate operations that Ores has carried out to date distinctive is that they have been carried out with its own resources (the REIT raised 195 million euros via a capital increase before going public). Once the company has invested all its capital, it plans to finance operations via bank loans (having set a maximum indebtedness of 50%). The socimi’s objective is to invest 400 million euros by the end of 2018.

What Assets It is Looking for and How It Works

The vehicle is expected to focus on very specific assets: to begin with, the assets must be in the Iberian Peninsula and, in addition, must be high-street commercial premises, supermarkets and hypermarkets, medium-sized parks (less than 20,000 m2), bank branches or unitary assets with long-term rents and solvent tenants.

Ores was created in mid-December 2016 and took less than two months to go public (real estate investment companies should be listed in the stock market within a maximum of two years from their inception). Thus, the team in charge managed to create the vehicle, raise capital and obtain MAB’s approval to go public in just a few weeks. Asset and administrative management is carried out by Sonae Sierra, while executive and strategic management will be in the hands of Bankinter.

The Spanish bank owns 10% Ores’ capital, while 4% is in the hands of Sonae Sierra and the remaining 86% is in the hands of private banking clients and institutional investors.

The company debuted at a price of one euro per share and a market value of 196.6 million euros. And currently, almost six months later, its securities are exchanged at 1.04 euros, which puts Ores’ capitalization at 204.5 million euros and translates into a modest appreciation of 4%.

Original Story: Idealista – Ana P. Alarcos

Translation: Richard Turner

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