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GMP Preps For Going Public As a Socimi, Supported by GIC

21/10/2014 – El Confidencial

GMP, one of the best known real estate companies in this sector and the owner of the iconic black skyscraper let to BBVA (in the center of the picture), became a Socimi (a REIT vehicle in Spain) and now it is planning to go trading on the stock exchange market.

The project of the Montoro family, running GMP, has received full support from GIC, an investment arm of the Singapore Sovereign Wealth Fund. Few weeks ago, the Fund purchased a 30% stake in the property manager, paying €200 million in total.

Thanks to the equity injection, the company obtained resources to establish itself as the key investor in offices and business parks in Madrid and Barcelona. Its new Stategic Plan assumes acquisition of carefully selected office buildings, divestment in non-core assets and refurbishment of a part of its stock.

For instance, this July, GMP sealed a deal on the old headquarters of Altadis located on the Eloy Gonzalo street, Madrid. The firm has just started renovation works for the building.

Even though Socimis have to wait two years before going public, the company which will trade under the name of GMP Sociedad de Inversiones Inmobiliarias Socimi believes it will take the step as soon as an opportunity emerges. However, it is not in hurry as it has not found an underwriting bank yet.

In 2013, GMP earned €98 million with an ebitda of €68 million and a net profit of €5 million. Its loan to value rate shows 52% and promises financial stability in mid-term. When it comes to the firm’s properties’ occupancy rate, it posts 93% and more than a half of the rental contracts expire after 2017.

 

Original article: El Confidencial (by Ruth Ugalde)

Translation: AURA REE