Real Estate Companies Create Socimi to Protect Galician Housing
17 August 2017
The objective of the Spanish REIT is to protect the Galician housing market.
The Galician Federation of Real Estate Business Owners (Fegein) plans the creation and start-up of a Real Estate Investment Company that may be listed on the alternative stock market as a counterweight to large foreign investment funds that may distort the local residential real estate market.
The objective is to strengthen the recovery and normalization that is taking place in the real estate market of the seven main Galician cities and its areas of influence.
“The Galician real estate sector cannot miss the opportunity to grow and to consolidate the effort made over the last eight years, which was now bearing fruit as the housing market enters a period of normalization,” said Benito Iglesias, president of Fegein.
The business owners believe that they must “help to implement a new tool in the format of a socimi (Spanish REIT), that will allow us to participate actively in the residential real estate market in Galicia, initially in Vigo and Ourense and their areas of influence and at the same time in the north of Lugo, and then in the rest of the cities. “The socimi would act on all fronts: habitual residences, secondary residences and holiday homes, offices, commercial premises and industrial buildings.”
To develop the necessary economic muscle and momentum “we plan to participate in the alternative stock market as the ideal medium to provide the financial muscle that will allow us to compete in a globalized market and in response to large investment funds that distort the proper functioning of the local market.”
This idea arose after the sale of 51% of Banco Popular’s toxic property assets to the North American asset manager Blackstone.
Original Story: Atlantico.net
Translation: Richard Turner