AURA News Real Estate

Almagro Capital Buys Four Residential Properties in Madrid

The residential Socimi has acquired four new assets in Madrid, where it already owns 60 properties, through the ‘reverse housing’ formula.

The Socimi Almagro Capital, which specialises in residential buildings for the elderly, has acquired four new properties in the city of Madrid, taking its portfolio of assets to more than 60.

The assets acquired are located in the neighbourhoods of Goya, Marroquina, Pinar del Rey and Aluche, as reported by the company this morning. In total, the new properties add more than 345 square metres of surface area to the Socimi’s portfolio. Almagro paid 810,000 euros in total for the assets, which it financed using its own resources.

Almagro Capital Tripled its Property Portfolio in 2019 but Doubled its Losses

The Socimi, which specialises in the purchase and subsequent rental of homes for the elderly, lost €805,238 in 2019, despite multiplying its property portfolio by 3, in the midst of its business expansion.

Almagro closed 31 December 2019 with a portfolio spanning more than 8,300 square metres, corresponding to 58 properties in the city of Madrid. That figure represents an increase of 310% compared to the end of the previous year.

Almagro Capital Acquires 11 Flats in Madrid

January 2020

The socimi Almagro Capital has acquired eleven flats in Madrid for a total of 2.4 million euros. The properties are located in the neighbourhoods of Castellana, Arapiles, Palos de Moguer Trafalgar and Lavapiés. The rental flats, whose leases will remain in vigour, have a combined surface area of 1,022 square meters.

La socimi Almagro Capital ha adquirido once pisos en Madrid por un total de 2,4 millones de euros. Las propiedades están ubicadas en los barrios de Castellana, Arapiles, Palos de Moguer Trafalgar y Lavapiés. Los pisos de alquiler, cuyos contratos de arrendamiento permanecerán en vigor, tienen una superficie combinada de 1.022 metros cuadrados.

Original Story: Eje Prime

Translation/Summary: Richard D. Turner

Seven New Socimis Start Trading on Spain’s MAB in First Seven Months of 2019

26 August 2019

In the year to date, seven new companies, with a total capitalisation of 799.6 million euros, have started trading on Spain’s Alternative Stock Market (MAB), a testament to the pace of activity in the local real estate market.

Just in January, three companies made the leap to the MAB. Almagro Capital stared trading at 1.08 euros per share, while a few days later, Park Rose Iberoamericana began trading at 1.15 euros per share, valuing the Catalan socimi at 10.8 million euros. Urban View, a socimi which invests in rental flats, began trading at 7.2 euros per share, valuing the company at 38 million euros.

The month of July also saw important new IPOs. Trivium Real Estate starting trading with a market capitalisation of 255 million euros. One day later, Millenium Hotels Real Estate I began trading with a capitalisation of €262.5 million. The company, which focuses on the acquisition of 4 to 5-star hotels, has two functioning hotels and three under development, with a total of about 640 rooms.

A few days later, Inbest began trading on the market through four different socimis, with a total market capitalisation of €84.7 million. One of the socimis has a portfolio of four commercial stores, all of them rented to El Corte Inglés. Another has a portfolio that includes the commercial gallery at the bottom of the Edifício España in Madrid.

Original Story: Eje Prime – Marta Casado Pla

Adaptation/Translation: Richard D. K. Turner

Socimi Almagro to Increase its Capital to Buy New Assets in Madrid

27 March 2019 – La Vanguardia

The Socimi Almagro Capital, which specialises in residential properties for the elderly, has approved a €15 million capital increase to finance new acquisitions and consolidate its growth in the Spanish capital.

Almagro Capital, which is managed by the Spanish firm Ofila Management, owns 24 assets in the centre of Madrid, located in the Chamartín, Goya, Chamberí, Princesa, Chopera, Lavapiés, Recoletos, Palacio, Salamanca, Viso, Chueca, Retiro and Tetuán areas.

The Socimi made its debut on the MAB in January, with an initial share price of €1.07, which represented a company valuation of €10 million. That figure is set to rise to around €50 million over the short to medium term.

Original story: La Vanguardia

Translation/Summary: Carmel Drake

Almagro Capital will Debut on the MAB within the Next Few Months

15 November 2018 – Eje Prime

Almagro Capital is getting ever closer to the Alternative Investment Market (MAB). The Socimi, managed by Orfila Management and constituted in June 2017, has set itself the objective of listing between the end of this year and the beginning of 2019, according to sources at the company speaking to Eje Prime.

The company has just made the final move so that its debut on the stock market can materialise as soon as possible: it has converted itself into a limited company under the brand Almagro Capital Socimi, according to the Official Gazette of the Mercantile Registry (Borme).

Once on the MAB, the company is planning to undertake a capital increase and expand its presence in the main Spanish cities and their metropolitan areas, specifically: Valencia, Málaga, Salamanca, Granada, Bilbao and Sevilla. In all of these areas, the firm is going to adopt the same business model: to acquire housing for people aged over 65 years in which the sellers themselves become the tenants until they die.

Currently, the company has nine properties located in the city of Madrid, which range in size between 55 m2 and 585 m2 and which are worth between €300,000 and €3 million. The portfolio of homes includes assets located in the neighbourhoods of Chamberí, Goya, Chamartín, Princesa, Chopera, Lavapiés, Recoletos and Palacio.

Almagro Capital is the first Socimi oriented exclusively at the residential market for the elderly. Led by Felipe de los Ríos, the company carried out two capital increases in September: one amounting to €5.6 million and the other amounting to €13,154, as published in the Borme.

Alongside Felipe de los Ríos at the helm are José Nistal, a former director of Merrill Lynch and Ecofin; Francisco López de Posadas, founder and director of investments at Lift; and the tax expert Luis de Ulibarri – the three partners who launched Orfila Management in June 2017. To date, the manager has financed its investments with capital increases and debt.

For the time being, the company is not planning to diversify its activity or enter any new real estate segments. “We are specialising in a very powerful market niche and we want to continue backing it for a long time”, say sources at the company.

Original story: Eje Prime (by B. Seijo)

Translation: Carmel Drake

Almagro Capital, the Socimi Specialising in Homes for the Elderly, Prepares its MAB Debut

27 July 2018 – Idealista

Increasingly, more and more Socimis specialising in alternative assets are wanting to take their portfolios to the stock market. The latest is Almagro Capital, one of the largest Socimis to specialise in residential assets for the elderly. The company has proposed making its leap onto the Alternative Investment Market (MAB) in 2019 and raising €50 million to grow through purchases.

Almagro’s business model focuses on acquiring homes for the elderly whereby the vendors themselves become the tenants of their homes. These investments respond to an increasingly widespread problem in Spain that directly affects the elderly: 90% of people aged over 65 years live in a home that they own and 30% admit to struggling to make ends meet.

Almagro Capital was founded last year by former directors of Lehman Brothers and Merril Lynch. It will be the first Socimi from Orfila to focus its activity in Madrid. The company started with prime flats in the capital since they are assets with less volatility and which can achieve returns for investors of 10% per annum. Chamberí, Chamartín and Goya are the areas where the Socimi is centred.

The real estate vehicle has started the search for new assets, located in the metropolitan areas of the main Spanish cities, such as Madrid, Valencia, Málaga, Salamanca, Granada, Bilbao and Sevilla, amongst others, although it points out that its focus is placed on the Community of Madrid, and more specifically, on the region inside the M-30.

Almagro Capital is planning to make its debut on the Alternative Investment Market (MAB) in the summer of 2019. Until then, the company will continue to focus on the search for new opportunities in the market and is holding advanced negotiations to buy new assets in Madrid worth between €300,000 and €3 million.

Original story: Idealista