1/09/2014 – Expansion
On July 9th, Spanish Reit (or Socimi) Axia Real Estate went public in the Continuous Stock Market at a price of 10 Euros a share. At its IPO, it sold 36 million shares raising €360 million in funds.
It was the sixth flotation of a Reit this year. ‘The market is sufficient for everybody as over the past years the real estate activity has been almost null. In Spain, we have to boost a genuine Socimi industry which at the moment is still crawling. If you look at figures in other countries, you see vivid sectors‘ – says Luis Lopez de Herrera Oria, CEO at Axia Real Estate.
Axia the Socimi has called attention of such big-name international investors as Perry Capital, Gruss Capital, Pelham Capital, Trowe Price and Taube Hodson Stonex. ‘Before launching the vehicle, we managed to obtain 62% in committed funds from British and American investors mostly‘, Mr Lopez de Herrera says.
Apart from the €360 million IPO, the Socimi‘s managers obtained a 50% financing.
With the funds, Axia is going to invest in tertiary assets (non-residential) for rent. ‘We think smooth market with dwellings for rent does not exist‘, the CEO assures. Thus, the Socimi‘s portflio will be principally made of offices (around 70%), logistics (20%) and shopping malls (10%) situated preferably in Madrid and Barcelona. ‘The portfolio will be ready within 18 months‘, he says.
Year-to-date, Axia purchased five logistics hubs and an office building in Madrid for €70 million in total.
The next step will be to add value to the portfolio. Axia is run by Mr. Herrera Oria, Luis Arredondo and other prominent experts from the Spanish market, like Guillermo Fernández-Cuesta, Fernando Arenas and Stuart McDonald.
‘The sector must focus on returning the repossessed poperty to the custody of professionals and the job will be tough‘, the CEO adds.
Original article: Expansión (by Rocío Ruiz)
Translation: AURA REE