10 June 2016 – Expansión
The first Socimi specialising in the residential rental market in Spain is finalising its debut on the stock market and hopes to be ready to list on the Alternative Investment Market (MAB) before the end of the year. Quid Pro Quo – the name of Alquiler Seguro’s real estate investment company – wants to raise €50 million initially, which it will use to purchase properties for their subsequent rental.
The CEO of Alquiler Seguro, Antonio Carroza (pictured above), explained that the company wants to begin by incorporating 500 homes into its portfolio during the first phase. To that end, it has identified around 6,000 homes, from the total pool of homes that it manages, which fulfil the requirements set in terms of rotation, tenant retention and which are also likely to be acquired from their owners at market prices. The company has already signed purchase options with owners worth €12 million in total.
“Within 5 years, the aim is that the Socimi will own around 6,000 homes and achieve an investment volume of €500 million, through several capital increases”, explained the CEO.
Carroza said that, with that volume of assets, the group would then be able to consider moving onto the main stock exchange. Quid Pro Quo’s assets will be mainly located in Madrid, although it will also have a portfolio of homes in Barcelona, Valencia and Sevilla and, to a lesser extent, in Alicante, Vitoria and Bilbao. “We have worked hard to make the intermediation business profitable and to encourage both supply and demand; now, we want to close the circle by professionalising the supply”, said Carroza.
For the CEO, the future of the Socimis will involve specialisation. “The few (Socimis) that have been working in the residential sector until now are getting rid of that part of their businesses”, he said.
In terms of Quid Pro Quo’s shareholders, Alquiler Seguro will acquire up to 5% of the Socimi’s share capital, whilst the remainder will be offered up to domestic and international investors.
In terms of the Board of Directors, the Socimi’s highest executive body will comprise five members: the President of Alquier Seguro, Gustavo Rossi; the CEO, Antonio Carroza; and three independent directors, one of whom will come from a multinational entity and will have a financial background, to lead the Audit and Internal Control Committee. The other two independent directors will be Salvador Garriga – who has served as an MEP for the PP for twenty years – and José Luis Bartolomé, a real estate consultant and advisor.
Original story: Expansión (by Rebeca Arroyo)
Translation: Carmel Drake