Hispania To Absorb Its Socimi In A Merger

6 March 2016 – Cinco Días

On Wednesday, Hispania Activos Inmobiliarios reported to the CNMV that it is going to absorb its Socimi Hispania Real by means of a merger. The operation was expected by the market and will involve the parent company adopting the tax structure of a listed real estate investment company. The firm will approve the transaction at its shareholders meeting in April.

The two companies have agreed the approval and signing of the merger project as part of a process to rationalise the corporate structure of the group, which has decided to adopt the Socimi regime.

Both the conversion into a Socimi, as well as the absorption of the Hispania Real Socimi by Hispania Activos Inmobiliarios will be subject to approval by the shareholders at their next meeting, which is expected to be held in April.

The company is the full and direct owner of all of the shares of the Hispania Real Socimi, as reported to Spain’s National Securities Market Commission (CNMV).

On 18 February, Hispania Activos Inmobiliarios announced its plans to convert itself into a Socimi. The firm is managed by Azora, whose President is Concha Osácar (pictured above).

Hispania, which debuted on the stock exchange in 2014, had already revealed that its future plans included the possibility of turning the company into a Socimi, a vehicle that has a special tax structure and that is obliged to allocate some of its profits to dividends.

In April 2014, Hispania constituted its subsidiary Hispania Real, which decided to adopt the tax structure planned for Socimis and through which Hispania has closed several asset acquisitions. Nevertheless, the company continued to operate the parent company as a public corporation so as to undertake other types of operations.

In addition, last year, the company bought Barceló Bay Hotels & Leisure (BAY), to create the Socimi with the largest exposure to the Spanish hotel sector, with 9,000 hotel rooms.

Original story: Cinco Días

Translation: Carmel Drake

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