Sabadell’s Property Fund to Join the List of Socimis

1/10/2014 – Expansion

Banco Sabadell progresses on its plan to float several REIT firms, known as Socimis in Spain. By converting the real estate fund into such an investment vehicle, the entity aims at opening doors to institutional investors.

Sabadell BS Inmobiliario, since it is referred to, is one of the market veterans: set up in 2004, the fund manages a €1 billion worth of property. Today, the bank is the only owner of the holding as all shareholders left in March this year. Instead of closing and liquidating its fund, like other entities did, Sabadell decided to hand out equity to stakeholders.

Now, the bank preps the fund for listing it as a Socimi, possibly still before the year ends. With view to the move, Sabadell filed for an appraisal of the fund’s properties which include mostly tertiary (hospitals and offices), residential and industrial assets for rent.

Solvia – the Manager

If the plan comes true, the new Socimi will be administered by Solvia, the REO servicer of the bank. Solvia is also forging a fund intended for 30 hotel assets worth €1 billion in total. Odds are high for the vehicle to go public one day, too.

At the end of 2013, Sabadell BS Inmobiliario possessed 24 office complexes, three hospitals, 1.600 dwellings, 3.200 parking spaces, 69 retails and three industrial warehouses. Total area of these properties spreads over almost half a million of lettable square meters. Among the rented buildings one may find the Quiron hospitals in Barcelona, San Sebastian and Bilbao, the headquarters of Telvent (now Schneider Electric) and Urbaser in Madrid and Faurecia manufactures in Barcelona, Navarre and Valencia. One of its units stands in Paris.

Original article: Expansión (by S. Saborit)

Translation: AURA REE