Mazabi’s Socimi Silicius Plans to Double its Portfolio in 2018

18 December 2017 – Eje Prime

Mazabi is backing Silicius growth. The Socimi is ending the year by drawing a new roadmap for its future and setting itself new challenges for 2018. According to explanations provided by the company, one of its objectives is to reach an asset volume of €300 million next year, compared to its current property portfolio value of €120 million.

Currently, Silicius receives annual rental income of approximately €6 million. Recently, the company purchased a new asset in the north of the country: it acquired the property at number 2 Plaza Arroka in San Sebastián, owned until then by the supermarket chain Eroski (…).

Silicius is also currently in the middle of developing its plans for the Obenque building in the Spanish capital, which has undergone a complete renovation, according to Eje Prime. The total surface area of that property amounts to 5,870 m2 and it is used as office space, with 140 parking spaces. The work on Obenque will finish in February, but the company has already started marketing the asset, which may be leased in its entirety by a single operator or shared between several tenants. The average rental cost of the building is approximately €14/m2/month or €1.12 million per year (…).

At the beginning of October, the company signed a €29 million loan with two Spanish banking entities. With that loan, the real estate company may accelerate the purchase of assets (worth €44 million) forecast in its business plan before the end of the year.

According to Juan Díaz de Bustamante, the CEO of Silicius, these acquisitions will primarily be retail premises, out of town stores and office buildings leased over the long-term. “The strategic locations for us are the main cities in Spain and the provincial capitals, with a special focus on the north of the country”.

The company is not going to limit its acquisitions to Spain and will analyse opportunities in Europe’s major capital cities as well. Specifically, the company is currently looking at the possibility of closing an acquisition in Portugal.

The new phase for Silicius will be divided into two, according to sources at the Socimi. “Firstly, the Socimi will incorporate family groups and real estate firms into the project through the contribution of rental assets by the respective groups to diversify their investment and risk with the aim of finding liquidity and management efficiency”. In this sense, Silicius expects to be able to finance its plans with a capital increase, through contributions, ranging between €25 million and €50 million.

In the second part of the new phase, the Socimi will incorporate a contributing equity partner to its share capital. The group has set itself the objective of listing on the stock market in 2018 with a value of around €250 million. Once listed, the company’s aim is to incorporate institutional shareholders to achieve the minimum target of €400 million, the amount that the group considers necessary for the Socimi’s shares to be considered liquid.

Currently, the firm holds in its portfolio a hotel in Conil (Cádiz), two office buildings in Madrid and four retail assets with tenants such as Cortefiel on Paseo de la Castellana and another leased to Vips on Calle Velázquez.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

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