Renta & APG Increase Their Socimi’s Share Capital by €40M

28 November 2017 – Eje Prime

In its Socimi with APG, Renta has found a business that needs developing more carefully. The company, which operates in the real estate sector, under the name Rembrandt, has just increased its share capital by €40 million, according to sources at the group, speaking to Eje Prime. This capital injection will be used to purchase new assets, which will be added to the two batches of properties that the group has acquired since its creation.

According to the records at the Mercantile Registry, Rembrandt Activos Residenciales Socimi has increased its share capital by €40 million. The company’s resulting subscribed capital is fixed at €90 million. This is the second capital injection that the company has carried out since its creation in April. The first amounted to €50 million and was completed in July.

Rembrandt carried out the purchase of its first assets in June. The company closed its first investment when it acquired two residential complexes in Navalcarnero and Rivas-Vaciamadrid, both municipalities of Madrid, for €25 million. The two assets have a combined surface area of 20,892 m2 and contain 335 rental homes (…).

Rembrandt carried out its second purchase a month ago when it bought a real estate complex comprising three buildings with a combined surface area of 20,114 m2 in Aravaca in Madrid for €50 million. In that deal, the vehicle managed by Renta Corporación purchased 156 homes with an average surface area of 102 m2 and 168 parking spaces.

€1 billion spending spree

Renta and APG have the aim of spending around €1 billion to fatten up their Socimi. Although 80% of the purchases that Rembrandt is going to carry out will involve residential assets, it does not rule out spending the remaining 20% on other opportunities. (…).

Moreover, Renta and APG’s plans for Rembrandt include debuting the company on the stock market within the next two years; they have their sights set on the main exchange. The company has its offices on Calle Velázquez in Madrid, in the same building as the headquarters of Renta Corporación in the Spanish capital. Although for the time being, Rembrandt’s team comprises exclusively Daniel Loureda, the former executive of Testa, the firm wishes to expand its structure over the next few months.

The first step has been to create a Board of Directors. Renta Corporación will put José María Cervera, the Director General of the Group, at the helm, whilst APG has reserved three seats for Martijn Vos, Raphael Villalba and Johannus Hans, all of whom are directors of the pension fund. Daniel Loureda, who is currently combining his role as the leader of Rembrandt with his position as CEO of the property developer Nidom Homes, also has a seat on the board.

In this way, Rembrandt will be one of the financial lungs of Renta Corporación over the next few years. So much so that it will help it to fulfil one of its short-term goals, which is to generate a net profit of €13 million by the end of this financial year, compared with the €4 million that the group recorded last year.

According to the latest available data, Renta is on track to achieve its objective. The group closed the third quarter with a net profit of €10.3 million, multiplying by five the €2.1 million of profit that it obtained during the same period in 2016.

Renta Corporación currently has a portfolio of assets worth €215 million, but that figure may increase to €250 million before the end of 2017, which the company considers would be “optimal” for normal operations.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake