5 December 2017 – Eje Prime
The Socimi owned by Altamar, the property developer Elix and KKR has purchased its first assets. The company Elix Vintage Residencial has injected €3 million for the purchase of four buildings, located in Barcelona and Madrid, according to explanations given by sources at the company to Eje Prime.
According to the Official Gazette of the Mercantile Registry, the firm has carried out a capital increase amounting to €3 million in the company Elix Vintage Residencial Socimi. In this way, the company’s subscribed capital has increased to €3.06 million. According to the company, the first purchases that have been carried out involve four residential assets, in Barcelona and Madrid, although sources at Elix declined to give more details about the properties.
KKR and Altamar Capital Partners joined forces in July to invest in the Spanish market for the renovation and leasing of homes. The two funds signed an agreement with one of the property developers with the greatest amount of experience in the sector, Elix, to launch a Socimi that will invest more than €200 million in the purchase of properties in Barcelona and Madrid. The objective of both funds is to debut the investment vehicle on the stock market once it has carried out the bulk of its investments.
This company, which is headquartered in Barcelona, was created with share capital of €100 million. That capital was mostly contributed by KKR and a group of international and domestic investors, including Altamar and Deutsche Finance Group. The rest of the shares are owned by Jaime Lacasa and Jorge Benjumeda, founders of Elix.
The idea is that this capital contribution could be doubled with indebtedness. The plan involves purchasing around four buildings over three years and subjecting them to complete renovations before putting them on the market as rental homes once they have been refurbished. That rental income will feed the Socimi, which plans to rotate its asset portfolio every three years.
Elix will be the company responsible for converting the properties, and so it is acting as an industrial partner. With this vehicle, the company will be able to scale up its business model, which until now had been very concentrated in the El Eixample district of Barcelona. The company, founded in 2003, expanded its activity to Madrid last year (…).
In parallel to its Socimi, Elix is pushing ahead with its business, to which end it has hired a new director to strengthen its real estate area. The company has recruited Rafael Vázquez to lead the management of its property portfolio.
The company’s newest member will lead an area that handles around 1,000 properties and which is expected to include another forty new buildings (to be renovated) thanks to the more than €200 million of funding that the Socimi Elix Vintage Residencial has available to spend on assets in the Spanish and Catalan capitals.
Vázquez, who has more than fifteen years of experience in the sector, joined the firm from Encore Captial Group, a company for which he carried out asset recovery services in Spain. The executive holds a degree in Architecture and an MBA from the IE business school.
Original story: Eje Prime (by C. Pareja)
Translation: Carmel Drake