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Lar España Plans To Invest At Least €240M In 2017

7 October 2016 – Expansión

Lar España has the capacity to invest at least €240 million in 2017, according to comments made by the Socimi in a presentation to analysts.

The company will also have a further €300 million available from the possible sale of its non-commercial assets between 2017 and 2018, meaning that it will not have to resort to the market or to a capital increase to raise funding. Lar, like all of the other Socimis, is obliged to rent out its assets for at least three years. After that period, the firm may divest its properties to release cash to make new purchases.

Lar explained to the market that the luxury housing development Lagasca 99, located in the heart of the Salamanca neighbourhood in Madrid, will be ready for sale during the first quarter of 2018. Similarly, the firm owns several non-commercial assets, specifically offices in Madrid (Egeo, Arturo Soria, Torre Spínola and Eloy Gonzalo) and Barcelona.

In July, the Socimi completed a capital increase amounting to €147 million. A month and a half later, it signed the purchase of the Gran Vía de Vigo shopping centre for €141 million. At the time, the company reported that, including that asset, it had identified opportunities in the market amounting to €838.5 million.

The value of the almost 25 real estate assets in the group’s portfolio amounts to €1,191 million, according to the latest available valuations. Of that figure, 76% relates to retail and commercial development assets, 13% are offices, 6% are logistics assets and 5% are residential properties.

Lar España, which is managed exclusively by the Lar Group, has indicated that it plans to reduce its management fees by adopting a new policy. The group also said that it plans to launch value adding initiatives aimed at increasing the appeal of its assets and improving their occupancy rates and rents.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake