7 October 2016 – La Vanguardia
The CEO of Optimum Re Spain, Josep Borrell Daniel, has positively assessed the debut of his Socimi on the Alternative Investment Market (MAB) and highlighted that its value on the stock market has increased by 10% in just a week.
Borrell was speaking at an event “Socimis: the road to a new real estate sector” organised by Garrigues, Gesvalt and Solventis in Barcelona.
He said that the value of Optimum Re Spain, a Socimi that specialises in the residential market in the centres of Barcelona and Madrid, has increased by 10% on the stock exchange in just a week, following its debut on the MAB.
Optimum RE Spain owns around 15 buildings in Barcelona and Madrid, with an average purchase price of €2,000/sqm and average rents of 4.5%, which will increase to 5% or 6% over the next few years.
Borrell highlighted that his objective is to significantly improve the quality of the buildings and increase their rents with the aim of divesting the assets within a period of seven years to obtain an “attractive return”. He acknowledged that those sales may happen “sooner or later” depending on the evolution of the market.
The fact that the Socimi has purchased at the low point of the cycle means the properties will generate significant returns and he hopes to be able to sell them for between €3,500/sqm and €4,000/sqm.
The Socimi has invested around €70 million to date and still has another €4 million or €5 million to spend.
Borrell said that he is considering constituting another Socimi, similar to Optimum RE Spain or a rental Socimi: “we have the capital, the problem is choosing the product”, he said.
Original story: La Vanguardia
Translation: Carmel Drake