Quabit Postpones Flotation of Its Socimi & Runs Private Placement

22/10/2014 – El Confidencial

Halt to gear up. This is the strategy that Quabit undertook for its Socimi Bulwin Investments as it faced gale on the stock exchange markets caused by other vehicles of this kind, and found it difficult to raise €400 to €500 million expected at the flotation scheduled for November.

At today’s administration board meeting, the firm will approve start of a private placement process, predicted to bring about a half of the previously foreseen figure and intend the equity for purchase of assets for the Socimi. The plans of listing the real estate investment trust will be re-taken next year.

Quabit wants to include in the portfolio quality property mostly in Madrid and Barcelona, all of residential (40%), retail (similar percentage of offices and shops) or logistics type (20%).

Santander acts as the underwriter for Bulwin Investments.

Felix Abanades has stepped down from his president position in the Socimi, in favor of Jorge Calvet, vice-president of Quabit.

Unofficially, Quabit delayed the listing because of the recent wave of Socimis poaching attractive properties and applying for financing of their acquisitions. Since the beginning of the year, Hispania, Lar Socimi, Merlin Properties and Axia have gone public.

Moreover, several real estate giants prep their own vehicles, such as GMP which together with Singapore Sovereign Wealth Fund (GIC) have a Socimi in the pipeline. Blackstone may serve as another example with its affiliate Fidere embracing 1.860 dwellings located in Madrid.


Original article: El Confidencial (by Ruth Ugalde)

Translation: AURA REE