Three Funds Launch Largest Socimi With 1.500 Offices of Santander

14/04/2014 – Expansion

Offices of Santander will become listed. Three international funds, Pearl Group, Sun Group and Drago Real Estate that acquired in 2007 1.150 offices from the group chaired by Emilio Botin are preparing their flotation as a REIT company (known as a Socimi in Spain) called Samos Servicios y Gestiones.

The new company will manage around €2 billion worth. It will join two other freshly listed Socimis, Lar España and Hispania Activos Inmobiliarios. There is another REIT company gearing up to become listed, namely Merlin Properties´s firm that embraces offices of BBVA and is expected to raise between €1 and €1.5 billion at its flotation.

 (…) The funds want to take advantage of the fiscal benefits given by a Socimi.

Samos was created in 2007 to acquire nearly one fourth of all Santander´s offices: 1.152 units for €860 million. (…) In the same year, Pearl, Sun and Drago borrowed €1.450 million in senior debt and €400 million in mezzanine bonds. Due to capital enlargement, they will be converted in the company´s shares. (…).

The newly set up Socimi will be managed by Drago Capital and Sun Capital. (…) Lease contracts will be signed for between 45 and 47 years.

Since the end of 2013, when the first REIT firms became listed, four of them appeared on the Stock Exchange market: Promorent, Entrecampos, Lar España and Hispania, although in fact it is not a purely understood Socimi.



Original article: Expansión (by Jorge Zuloaga)

Translation: AURA REE