28 January 2016 – Expansión
After debuting its first Socimi on the Alternative Investment Market (MAB) last September, Corpfin Capital is trying its luck on the Madrid stock exchange once again, just four months later, in the form of its second listed investment vehicle, Corpfin Capital Prime Retail III, which starred yesterday in the first ring of the bell in 2016.
The real estate arm of Corpfin Capital, which has so far launched four investment vehicles, is intending to create a fifth entity this year with a view to entering new businesses and expanding the mix of assets to include the residential, hotel, office and retail segments. “We are exploring other types of investments, but through another vehicle”, explained Javier Basagoiti, Managing Partner of Corpfin Capital Real Estate and President of the new Socimi.
Specifically, the two Socimis have a joint investment capacity of €110 million for 2016 and they have already spent €76 million. “The remaining €30 million has already been allocated to the purchase of assets, mostly in Madrid”, says Basagoiti, who rules out a capital increase for the time being.
The Director explained that he expects (the vehicle) to provide investors with an annual return of more than 15%, compared with the current yield of 7%.
Despite the sudden rise of the Socimis – Corpfin Capital Prime Retail III is the twelfth company of its kind to list on the MAB –, Basagoiti denies that a Socimi bubble is emerging, instead he regards the vehicles as investment “opportunities”. “A bubble would be created if the investment policy was no good and it was playing on the change in the (economic) cycle with risky investments”, he said. 90% of the company’s investors are domestic and 10% are from the United Arab Emirates. “We focus on small-time savers and private banking clients”, he says.
The real estate area is one of Corpfin Capital’s core business areas; its primary activity is the management of private equity funds.
Original story: Expansión (by Rebeca Arroyo)
Translation: Carmel Drake