10 July 2017 – Cinco Días
Kingbook Inversiones, a Socimi that owns 57 petrol stations operated by Petrocorner, will debut on the Alternative Investment Market (MAB) tomorrow, 11 July, at a price of €4.78 per share, which represents a company valuation of €23.9 million.
This makes it the 36th Socimi to debut on the market, and the first to be constituted from real estate assets dedicated to fuel distribution in the retail sector and other commercial activities.
Kingbook owns a portfolio of 57 service stations throughout the country. The operation of all but one of them is leased to Petrocorner; the exception is a gas station located in Almería, which is operated by BP. The firm also owns a hotel in Mirando de Ebro and an industrial warehouse in Jaén.
The company, chaired by Antonio Eraso Campuzano, said that although it has begun life focusing on gas stations, it has a “general profile” and for that reason, “it does not rule out investing in other sectors in the future”.
It is one of the Socimis that is expected to debut before 1 August, when according to the experts, between five and eight new Socimis may debut, due to a change in legislation with respect to minority shareholders. From next month, the one-year deadline that these companies have to comply with in terms of diffusion requirements disappears (2% of minority shareholders or €25 million must be in free float).
At the end of the first quarter of this year, Kingbook reported rental income from its gas stations of €1.59 million, however, it registered a loss of €175,983. In financing terms, the Socimi holds debt amounting to €42 million, equivalent to 84% of its asset value.
Finalising a €100 million loan
Nevertheless, the brochure submitted for the firm’s debut on the MAB explains that it is currently in the process of negotiating new bank financing, for which it has already agreed the general terms.
It is a €100 million loan with a five-year term granted by a group of banks that, although it has not been signed yet, already includes ING Bank and Banco Santander. The financing will be structured into three tranches, one for €30 million, a second for €45 million and a third, for €25 million.
With this loan, Kingbook is seeking to refinance its current debt with shareholders and bank financing and obtain funds to pay for its new asset purchases with the aim of growing.
Original story: Cinco Días
Translation: Carmel Drake