Almagro Capital, the Socimi Specialising in Homes for the Elderly, Prepares its MAB Debut

27 July 2018 – Idealista

Increasingly, more and more Socimis specialising in alternative assets are wanting to take their portfolios to the stock market. The latest is Almagro Capital, one of the largest Socimis to specialise in residential assets for the elderly. The company has proposed making its leap onto the Alternative Investment Market (MAB) in 2019 and raising €50 million to grow through purchases.

Almagro’s business model focuses on acquiring homes for the elderly whereby the vendors themselves become the tenants of their homes. These investments respond to an increasingly widespread problem in Spain that directly affects the elderly: 90% of people aged over 65 years live in a home that they own and 30% admit to struggling to make ends meet.

Almagro Capital was founded last year by former directors of Lehman Brothers and Merril Lynch. It will be the first Socimi from Orfila to focus its activity in Madrid. The company started with prime flats in the capital since they are assets with less volatility and which can achieve returns for investors of 10% per annum. Chamberí, Chamartín and Goya are the areas where the Socimi is centred.

The real estate vehicle has started the search for new assets, located in the metropolitan areas of the main Spanish cities, such as Madrid, Valencia, Málaga, Salamanca, Granada, Bilbao and Sevilla, amongst others, although it points out that its focus is placed on the Community of Madrid, and more specifically, on the region inside the M-30.

Almagro Capital is planning to make its debut on the Alternative Investment Market (MAB) in the summer of 2019. Until then, the company will continue to focus on the search for new opportunities in the market and is holding advanced negotiations to buy new assets in Madrid worth between €300,000 and €3 million.

Original story: Idealista

Translation: Carmel Drake

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