20 August 2017
The aim of Témpore Properties, the name chosen for the future listed real estate investment company, is to attract the largest possible number of investors and, to that end, properties were chosen that offered the highest possible returns.
Jaime Echegoyen, the CEO of Sareb, announced that the socimi (Spanish REIT) that the company plans to launch later this year will have a selection of 1500 of its best rental properties and a volume of assets worth more than 200 million euros.
The aim of Témpore Properties, the name chosen for the future socimi (listed real estate investment company), is to attract the largest number of investors and, according to Echegoyen in an interview, to that end, Sareb’s most attractive rental properties were chosen for the socimi.
The real estate company, which has a portfolio of almost 5,000 rental properties, selected around 1,500 assets in areas with high demand for rental housing, in, for example, the large capitals of Madrid and Barcelona, as well as in other large cities in Andalusia, the Valencian Community, Castilla-La Mancha and Aragon.
These are properties with attractive rental yields, above 3% per annum, which the real estate consultancy CBRE evaluated one by one throughout the month of July, to determine which assets Sareb will include in the socimi, and sold to future shareholders in Témpore.
Echegoyen intends to debut Témpore Properties on the MAB Alternative Stock Exchange, under which a large number of socimis incorporated over the last year. But the idea is to switch the socimi’s listing to the continuous market in the future, where companies with more visibility are listed.
With a volume of assets close to 200 million euros, Sareb’s socimi would be among the top five companies listed on MAB, behind General de Galerías Comerciales, GMP Properties, Zambal and Fidere.
An advantage of Témpore Properties to investors is that, in the future, if the shareholders of the company consider it appropriate, the size of the listed company can continue to increase thanks to Sareb itself, which has recently begun to bet on development.
Echegoyen recognizes that real estate development is very important for Sareb, which has gone from being almost exclusively focused on divesting its assets to investing in projects that can be highly lucrative if done right.
The real estate company already has 4,000 homes in progress, some in initial phases and some close to delivery and its development operations are being conducted at the same time as other assets continue to be liquidated.
In some cases, developments will be constructed on land owned by Sareb and in others, Sareb will complete construction on properties that are already at an advanced stage and which have economic viability, i.e., where it makes more sense to finish construction and thereby increase the value of the assets.
The completion of construction not only adds greater value to real estate assets and optimizes the investments that Sareb has, but also allows the company to collaborate with the estate development sector, contributing to the revitalization of that part of the economy.
Once the size of the socimi has been decided upon, Sareb will dedicate August to preparing the new company’s business plan and will choose a manager through a bidding process before starting, after the summer, the first talks with potential investors.
Despite the avalanche of socimis that have been listed in the last year, the president of Sareb believes that the real estate market has taken off in Spain and investors still want to benefit from it, whether buying property or investing through a socimi, which is “a very valid financial alternative.”
Original Story: EFE/Expansión
Translation: Richard Turner