7 July 2015 – Cinco Días
Socimis are the investor vehicle of the moment. Their tax advantages and the international funds that they are attracting, have turned Socimis into key players in the timid recovery of the real estate sector. And they are going to become even more important. Many of the first generation Socimis (those constituted in 2013, following the reform of the law governing these listed real estate investment companies) are obliged to list on the stock exchange before 30 September 2015; failure to do so will mean that they lose their right to not pay corporation tax.
“The law made provisions for a transition period for the fulfilment of all requirements. The deadline for one of those, to list on the stock market, ends on 30 September”, explains Antonio Sánchez Recio, Partner at PwC. According to market sources, there may be a dozen companies in this situation, although some of them are small and will only list to comply with the law, rather than to raise capital, at least initially. (…).
They will join those that currently trade on the main stock exchange, namely: Merlin Properties, Hispania, Lar España and Axiare. As well as the smaller companies, which are listed on the Alternative Investment Market (MAB), namely: Entrecampos, Fidere (owned by Blackstone), Mercal, Promorent and Uro.
Around 25 entities are now constituted as Socimis, but some of them have been created in the last few months, and so they will not be affected by the upcoming deadline.
Furthermore, other companies are not obliged to list in Spain at all, since their shares are already traded on other European markets. That is the case of Pryconsa’s companies, called Cibra 2009 and InveRetiro, which in turn are owned by Saint Croix Holding Inmobiilier, a Socimi listed in Luxembourg. And that is also the case of Orion Columba, the owner of the Plenilunio shopping centre, which is now itself owned by the French listed company Klepierre.
In addition to the companies constituted in 2013, the market expects that a large number of these vehicles will undertake IPOs in the coming months. Such is the case of Trajano, the Socimi recently created by Deutsche Bank. One of the most eagerly awaited is the future Socimi Pontegadea, the family office owned by Amancio Ortega, which has assets of almost €5,000 million. (…).
Another large company on analysts’ radars is IBA Capital’s company Zambal, which owns the ABC Serrano shopping centre, amongst other buildings. Other companies also include GMP Property, created by the Montoro family and the sovereign fund GIC, which owns large assets such as Torre BBVA in Madrid. Acciona is in the same boat, it is assessing different options for its commitment to the residential rental sector, including the creation of a Socimi, according to sources close to the company.
Other companies and funds that are setting up their own Socimis include: Green Oak, Drago Capital, Corpfin, Autonomy Capital, Jaba, Meridia, Rodez (through Anglón Alza), Quabit (with the Socimi Bulwin), Brookfields, as well as Santander Real Estate (Banif Inmobiliario), Norfin, Banco Sabadell (Solvia), Triangle, Turanta, Unibail Rodamco and Urbas.
Original story: Cinco Días (by Alfonso Simón Ruiz)
Translation: Carmel Drake