A Spanish Socimi Debuts on the Paris Stock Market to Avoid the MAB’s Requirements

26 July 2018 – Idealista

Some of Spain’s Socimis are looking beyond the Alternative Investment Market (MAB) in search of visibility, prestige…and one or more regulatory benefits. Logis Confort, the Socimi owned by the Valencian property developer and construction firm CV Grupo, has become the first in Spain to list on the Euronext exchange.

The company made its debut on the stock market headquartered in Paris on 13 July, at a price of €2.20 per share and a market capitalisation of more than €11 million; its portfolio comprises seven assets. Together its assets span a surface area of 23,521 m2 and are worth around €15 million, according to Gesvalt’s calculations.

Logis Confort is dedicated to the rental of industrial and logistics buildings. Founded in 2001 by Salvador Vila Arcos, the owner of CV Grupo (which specialises in building and leasing industrial warehouses and spaces), the company adopted the Socimi structure in August 2016. The firm, which has been advised by Armanext (the largest Spanish advisor in taking Socimis to the European stock market) has its headquarters in San Fernando de Henares, in Madrid.

The company is currently working on medium- and long-term projects and its aim is the acquisition of buildings, through purchase or development, in areas “with a great industrial tradition and close to large Spanish cities, to transfer them for rent”, according to the firm. The group’s shareholders include Salvador Vila Arcos, who owns 50% of the capital; Edelmiro Copoví, who owns 25%; and his brother José Manuel Copoví, who owns the remaining 25%.

The company’s shareholder structure is, precisely, one of the features that draws the most attention. Since it does not have any minority shareholders, the vehicle cannot trade on the Alternative Investment Market (MAB) where all of Spain’s other Socimis are listed, with the exception of the largest, which trade on the traditional stock market. It was just a year ago, when the manager of the market decided to tighten up the rules and, since then, it has forced these types of companies to have a minimum quantity of minority shareholders to approve their stock market debuts (…).

Therefore, since it did not have any minority shareholders, it soon became clear that the Socimi would have to undertake the operation on another European market. And Euronext is the one that establishes the fewest requirements in this regard, specifically the market called Euronext Access (there is another one called ‘Growth’, which establishes more onerous requirements). As such, it was chosen for the firm’s stock market debut to allow it to maintain the tax benefits that are afforded to Socimis (…).

Logis’s portfolio

Logis Confort has a portfolio of assets comprising seven industrial properties and several parking lots in Madrid and Valencia, two markets that are being boosted by the improvement in the economy, the recovery in exports, domestic consumption and e-commerce. By market value and surface area, the jewel in Logis Confort’s crown is the logistics warehouse located in Picassent, in Valencia, which spans 11,800 m2 and has a market value of €8 million. That property is leased to Facil Europe and Transfesa.

Also in Valencia, the Socimi owns assets in Almussafers and Ribarroja, which together have a market value of €6 million and span an industrial space of more than 10,700 m2. In Madrid, the company owns a logistics property in San Fernando de Henares, leased to Transecort Logistics, which has a market price of less than €1 million (…).

Original story: Idealista (by Custodio Pareja and Ana P. Alarcos)

Translation: Carmel Drake

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