“Lar España Disposes of €800 Mn to Invest Within Two Years”
7/07/2014 – Expansion
In March, Lar España debuted on the Spanish continuous stock exchange market. It was the first real estate firm listed since 2007 and the first Socimi (a REIT firm) in Spain. This kind of vehicles has become amazingly popular among investors lately. The president of Lar España, José Luis del Valle says “we have been weighting up creation of a Socimi since December, encouraged by talks with institutional investors”.
Unlike other Spanish REITs, Lar was launched on the continuous market instead of being listed on the MAB (Alternative Stock Exchange). “The Socimis are investor-friendly with their tax perks, liquidity and transparency”, he adds.
Before its flotation, such prominent investors as Pimco, Cohen & Steers and Franklin Templeton Institutional commited to Lar España´s shares, taking 12.5%, 7.45% and 4.44% of the stake respectively. In total, the Socimi has managed to raise €400 at its IPO.
“Now, we are going to invest in shopping malls and offices, residential not excluded, over the next 18-24 months. We aim at reaching a 50% deleveraging, plus financing rom banks that may hit another €400 million. Jointly, we dispose of €800 million to spend on real estate assets”, the company´s directors assure.
Lar España began with 150 investors and now their number has multiplied to 1.000 shareholders.
In three months only, the Socimi which started creating its portfolio from the scratch, presently owns two shopping parks. “We believe in 2014 and 2015 we will realize all the investments, while in 2016 going skyrocket”, tells the president.
Essencially, the management of Lar rests in hands of an independent administration board, not having any historical relationship with the Lar Group.
Original article: Expansión (by Rocío Ruiz)
Translation: AURA REE