Entrecampos, the first Socimi to enter the Alternative Stock Market.

 The real estate business is taking a different shape in the market. Entrecampos will start on the next 28th November its path in the Alternative Stock Market (ASM). And it will do so with the new alternative of the Socimi (listed public limited companies for real estate investment), a financial vehicle oriented to those companies renting buildings. “We represent a very different business to the one of the real estate companies listed in the stock exchange. The rental business has already digested the crisis, decreasing the rents. It is an activity which continues to be necessary”, Ignacio Segura, managing director at Entrecampos, explains. The company will start operating at a price of 1,59 Euros per share and will have 54,6 million  bonds  (representing  a  value  around  86,8  million  Euros).  In  this  operation, Entrecampos has been assessed legally by DLA Piper and by VGM Advisory Partners as a registered counselor.

The changed to the ASM takes place after the legal reform of last December. “We have left the market when the law has allowed us to do so”, Segura declares. The change in the law made the criteria to create the socimis more flexible, improving its taxation (0% on the company tax) and opening new ways to be listed with its negotiation in multilateral management systems, which are less strict than the traditional stock exchanges. This impulse has motivated that other companies within the sector would also be working in their change to that market.

Entrecampos pretends “to consolidate, grow and prevail in time” with the listing in the ASM, Segura declares. He admits that, generally, there can be some mistrust within investors to enter a company linked to the Spanish real estate sector. However, he hopes to catch the interest of other patrimonies wishing to enter an already consolidated socimi. “The future of the socimi will be linked to the patrimonial mergers”, he comments.

Entrecampos has some presence abroad (12,8% of its properties is located in Germany). However, Segura dismisses the entrance of foreign investors. “Before working with foreign patrimony it is necessary for us to grow”, he points out.

Source: Expansión