Blackstone Hatches a Socimi With 1.860 Properties in Madrid

3/06/2014 – Expansion

Promorent, Entrecampos Cuatro, Lar España and now also Fidere. Blackstone decided to launch its own Socimi (Spanish counterpart of a REIT firm) to enjoy benefits such an investment vehicle gives on the strength of 2012 regulation, like exemption from the corporate tax payment or the 95% discount on PropertyTransfer and Certified Legal Documents Taxes.

The private equity firm will not create a brand-new REIT but will list its affiliate Fidere through which Blackstone acquired 1.860 subsidized houses in Madrid in July last year.

The Socimi of Blackstone shall intend 80% of its assets (i.e. dwellings located in the Carabanchel, Centro, Vallecas and Villaverde neighbourhoods) for rent and 80% of all revenues of the vehicle shall proceed from lease. Moreover, 80% of the return shall be split among the Socimi´s stakeholders once per year.

Strinkingly, neither the CNMV (Spain´s Stock Exchange Commission), nor the MAB (the Alternative Market) received a notification about Blackstone´s plans. Sources from the private equity explain the flotation will not take place in short term and knowing the procedures, it may take up to 2 years to list Fidere as a REIT.

Prior to selling on the stock market, Blackstone´s branch will have to be valued by an independent expert named by the Mercantile Register. Its free float shall represent a minimum of €2 million or 25% of the stake. Every half a year, the Socimi´s development and results shall be reported and made public.

 

Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE

66