Bankinter’s Socimi Begins 2018 With a Record €86 Million Acquisition

2 February 2018

Ores’ first acquisition this year just broke the record it had set at the end of last year when it snapped up four assets in the north of Spain for 63 million euros.

Olimpo Real Estate (Ores), the socimi owned by Bankinter and the Portuguese firm Sonae Sierra, began the year with its most significant acquisition yet. The group announced that it had invested 86 million euros in the purchase of six stores in Portugal.

The assets acquired by the group consist of two hypermarkets, two supermarkets and two other stores located in Leiria, Loures, Mem Martins and Quinta do Conde. The assets are currently leased and operated by groups such as Continente, Worten and Sportzone, the latter two owned by Sonae Sierra.

“With this acquisition, financed through a twelve-month, €80-million bridge loan and shareholder’s equity, the company is continuing to comply with its investment objectives as outlined in its business plans and following the financial parameters established with our shareholders,” Ores said in a statement.

Ores’ first acquisition this year just broke the record it had set at the end of last year when it snapped up four assets in the north of Spain for 63 million euros. At that point, Ores acquired a 14,912-square-meter commercial asset in Logroño, on Rio Lomo street, operated by Carrefour. In Calahorra, Ores bought a 10,252-square-meter property managed by Eroski, located on a highway in Logroño.

The socimi also made acquisitions in Tolosa and Guernica. In Guipúzcoa, the company acquired a 4,147-square-meter commercial establishment in the neighbourhood of San Blas, while in Guernica it bought a 4,348 m2 retail asset in Txaporta.  Eroski manages both properties.

Ores, which began operations without any assets in its portfolio, has been acquiring properties since last April when it made its first two acquisitions. The company, which invests in commercial properties, acquired two stores in shopping malls including Artea, in Bilbao, and Galari, in Pamplona, paying 18.7 million euros. Both assets, which have a total area of 8,400 square meters, have the sports equipment group Forum Sport as a tenant.

The socimi, Bankinter and Sonae’s jointly-owned real estate investment vehicle, made a significant purchase in Oviedo in May. Located in the neighbourhood of Montecerraro, the commercial premises are leased by Mercadona and have an area of more than 2,700 square meters. Ores paid 5.8 million euros for the asset.

Also in May, the socimi acquired a property that had been owned by the German electronics chain Mediamarkt, in Braga, in Portugal. The asset has a gross leasable area of 4,986 square meters and was acquired for 5.7 million euros.

Ores is a vehicle that is geared for private banking customers. Although its asset portfolio is, at the moment, limited, the socimi came to the stock market with the aim of investing 400 million euros in commercial premises in high streets, supermarkets, medium-sized malls (up to 20,000 square meters), bank branches and individual assets with long-term rental contracts and solvent tenants.

Bankinter and Sonae Sierra launched the socimi in record time. On December 15 of 2016, both groups constituted the company and, in just two months, carried out the process of creating the vehicle, while raising enough capital for it to begin operations.

Ores was created with funds from Bankinter’s private banking segment through a capital injection of 196.6 million euros. Thus, private banking clients and some institutional investors control about 86% of the company’s capital. The bank led by María Dolores Dancausa, for its part, has been left with 10%, and Sonae Sierra, with just under 4%.

Original Story: EjePrime – Custodio Pareja

Translation: Richard Turner

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