The Socimis can now be listed in the Alternative Equity Market.

The listed limited companies which invest in the real estate market (Socimis) can now be listed. The circular which allows its listing in the alternative equity market was published yesterday. The Socimis were created in 2009 with the aim of promoting the rental market, offering tax advantages to investors. At the end of 2012, the reform of the Law 11/2009, modified on the 27th December, was approved. The most important novelties were the tax exemption in the Company tax and the possibility of being listed in the alternative equity market, instead of in the official stock exchange, as proposed in 2009.

For the Socimis to be listed it is necessary that the number of shares have an estimated value of two million Euros in the market. The issuing institution needs to provide a valuation made by an independent expert in order to establish a first reference price. This, unless there has been an offering of shares or a financial operation which results relevant to determine its initial valuation in the six months prior to the request.

For the moment, only one company has requested the start-up of this type of firm and its listing: the firm Promociones, Renta y Mantenimiento, controlled by the group Pavón Olid, owners of Moneygram and the optician´s shops chain Madrid Vision. José María Luna, analysis director of Profim, thinks it is positive that this type of firms appear, even though he thinks their yield will not be very high in the short term.

Source: Expansión