Blackstone To List Its Socimi ‘Fidere Patrimonio’ On MAB

25 June 2015 – El Mundo

Blackstone is going to list Fidere Patrimonio on the Alternative Investment Market (‘Mercado Alternativo Bursátil’ or MAB). The Socimi was constituted with a stock of social housing purchased by  the private equity firm in Madrid in recent years. The shares in the new Socimi will start trading on Monday 29 June, at €21.08 per share. This price represents a company valuation of €212 million.

Blackstone created Fidere Patrimonio with a portfolio of 23 social housing developments (rental properties), containing 2,688 apartments, which the fund has bought over the last few years, mainly in the Community of Madrid. (…).

With this IPO on the MAB, Blackstone seeks not only to comply with the rules governing Socimis, but also to acquire a financing mechanism for raising funds, which will to drive the future growth of the company, and will also “raise the company’s profile and attract new shareholders”.

In this sense, Fidere Patrimonio says that it will focus its investment policy on new companies with real estate portfolios owned by Blackstone’s investment funds and on “analysing new investment opportunities that arise in the market”.

‘Solvent’ tenants

However, the Socimi has said that, for the time being, it will focus on managing its current portfolio of homes “with the aim of increasing shareholders’ returns”. To this end, it has revealed that its leasing policy for social housing is based on “selecting tenants who are economically solvent and who have long-term visibility over their income”, in order to increase the occupancy rate of its homes.

Specifically, the company asks its tenants to provide their last two payslips and then checks that the percentage rental spend will not exceed 40% of their (respective) salary; it also performs checks to confirm that prospective tenants are not registered on Asnef’s credit black list. (…).

Blackstone’s Socimi is aiming to secure an occupancy rate of between 80% and 95% for its housing stock, compared with its current rate of 76% and the 2014 year-end rate of 68%.

Profits and dividends

Meanwhile, Fidere Patrimonio closed 2014 with a net profit of €1.6 million, whereby overcoming the “losses” that it had recorded in the previous year. The Socimi’s turnover amounted to €5.54 million, of which €4.6 million was generated by the social housing in Madrid that the fund purchased from the EMV.

In terms of financing, the firm has financial net debt of around €65.7 million, equivalent to 22% of the market value of its assets. The company considers that this “reduced” leverage will encourage the payment of dividends.

Original story: El Mundo

Translation: Carmel Drake