Árima to Undergo €100-million Capital Increase

3 October 2019 – The socimi Árima intends to conduct a €100-million capital increase to continue with its strategy of pursuing growth through the acquisition real estate assets.

The firm announced that it would seek to approve the increase at an extraordinary shareholders meeting scheduled for November 5.

The capital increase will be directed towards new investors since the current partners will not have the right to first refusal over the emission.

Original Story: Europa Press

Adaptation/Translation: Richard D. K. Turner

Árima Finances Acquisition of Sonae Spain’s Headquarters

9 July 2019 – Richard D. K. Turner

Árima Real Estate has signed long-term financing agreements with CaixaBank and BBVA for a total amount of 63.8 million euros, using the funds to finalise its acquisition of Sonae Spain’s headquarters in Madrid. The socimi reported that the financing arrangements have flexible conditions and competitive interest rates.

The asset that Árima acquired is in the region of ​​Avenida de América-Torrelaguna in Madrid. The building has a gross leasable area (GLA) of ​​6,759 square meters, along with 110 parking spaces.

Árima’s total investments since its stock market debut six months ago have now reached 173 million euros. The socimi currently has more than 61,000 square meters of GLA. Of that, 89.3% corresponds to office buildings and the remaining 10.7% is in the logistics segment, all in Madrid.

Original Story: El Economista / Europa Press

Árima Makes its Logistics Debut with the Purchase of a Warehouse for €16.4M

7 May 2019 – Expansión

Árima Real Estate has made its debut in the logistics sector with the purchase of a warehouse spanning 26,000 m2 in San Agustín de Guadalix from an institutional fund for €16.4 million. The property is occupied in its entirety by the supermarket chain Eroski.

For the operation, the Socimi led by Luis Alfonso López Herrera-Oria, has been advised by Catella, EY Abogados and Savills Aguirre Newman as its real estate, legal and technical experts, respectively.

Following this operation, logistics assets account for 12.7% of Árima’s portfolio, with the remainder comprising offices in Madrid. The Socimi’s main shareholders include Bank of Montreal (10.4%); the British fund Pelham (9.984%); UBS (9.164%); Luis Alfonso López Herrera-Oria, (7.791%) and Morgan Stanley (5.122%).

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Socimi Árima Closes €40M Capital Increase (20% Below the Forecast)

4 April 2019 – Europa Press

The Socimi Árima has completed an accelerated capital increase by raising €40 million, which fell 20% below the target of €50 million, according to the firm.

The operation, which targeted qualifying and institutional investors, was participated in by “certain” members of the management team, led by the former CEO of Axiare, José Luis López de Herrera-Oria.

All of them subscribed shares in the company at a price of €10 per share, equivalent to the debut price on the stock market in October, and below the closing price at the end of trading on Thursday (€10.20).

Despite having raised less than expected, López de Herrera-Oria concluded that the operation has been a success.

Original story: Europa Press

Translation/Summary: Carmel Drake

Árima to Increase its Capital by €50M to Repay Debt & Purchase Assets

2 April 2019 – Expansión

The Socimi Árima, led by Luis Alfonso López de Herrera-Oria (pictured below), is going to carry out a capital increase of up to €50 million (expandable upon demand), which will be used to early repay a €30 million loan signed with CaixaBank, as well as to purchase new assets.

The company hopes to incorporate new investors through this operation, which will see its share capital increase by 50%, whereby providing more liquidity for its equity.

The capital increase will comprise the issue and launch into circulation of 5 million new ordinary shares with a nominal value of €10 each, which will be issued without an issue premium. It will be carried out through an accelerated placement aimed at qualifying and institutional investors.

The company’s asset portfolio amounts to €121 million, spans a gross leasable area of 29,000 m2 and includes more than 460 parking spaces in the office sector in Madrid.

Original story: Expansión 

Translation/Summary: Carmel Drake

Árima Acquires Two Prime Office Buildings in Madrid

7 February 2019

Árima is remaining faithful to its goal of generating value for its shareholders and complying with its contractual committments. In this line, Árima has concluded the acquisition of two office buildings in Madrid, fulfilling the binding investment commitment it announced on December 27, 2018. Árima also announced that it had signed a 30-million-euro bridge loan with CaixaBank, which will allow it to continue expanding its portfolio.

On December 27, the Socimi announced the acquisition of its first two real estate office assets for 31 million euros. The assets in the middle of the Madrid central business district: on calle María de Molina, on the corner of Príncipe de Vergara, and at the junction of Paseo de la Habana and Avenida de Alfonso XIII. The firm also announced a binding commitment to acquire two prime office buildings, which it formalised in January 2019, as planned. The total amount of the operation amounts to 62.75 million euros. The two office buildings have a total gross leasable area of ​​20,200 m2 and have a total of 395 parking spaces.

The first of the two assets is located on calle Josefa Valcárcel 42, in the urban and very corporate area around the M30-A2, next to the new headquarters of Santander Spain and calle Arturo Soria, and with quick access to the airport. The building benefits from high levels of visibility from the A2 and is currently leased to very well-regarded Spanish multimedia groups. Árima has hired the architectural studio Álvarez-Sala to plan a full rehabilitation and transform it into one of the best office buildings in the area.

The other property is in the Cristalia business park, in the business district of Campo de las Naciones. It is one of the best buildings in the area and has LEED Gold certification. The building is partially leased to one of the largest insurance groups in the world, and the company is in advanced negotiations to take over the rest of the building.

In total, the Socimi, which debuted on the stock market on October 23, has completed the acquisition of four real estate assets and has already invested all the funds it raised from its shareholders. The acquisitions faithfully adhere to the socimi’s investment model, which is made up of a balanced portfolio of leased offices with a significant potential for elevated returns for the socimi’s shareholders.

Luis Alfonso López de Herrera-Oria, the CEO of Árima, stated: “We are still able to find good opportunities that, thanks to the team’s agility and real estate experience, we can quickly execute and increase their value, as we have shown in the past.”

EY Abogados acted as a legal advisor, PwC for technical due diligence and CBRE as a global advisor for Árima on the operation.

Original Story: EjePrime

Translation: Richard Turner

 

Socimi Árima Buys 4 Office Buildings in Madrid for €110M

27 December 2018 – La Vanguardia

The Socimi Árima has purchased its first four office buildings in Madrid for €110 million, operations that it has carried out just two months after making its stock market debut in October without any real estate assets in its portfolio.

In this operation, the firm promoted by the former CEO of Axiare, Luis López de Herrera-Oria, has invested the c. €100 million that it raised from its stock market debut and “is whereby starting its journey”.

The four assets purchased comprise a combined surface area of around 27,000 m2, as well as 460 parking spaces, and are located in the business centre district and northeast of the capital.

The firm, which is going to invest €16.7 million to improve the properties, is convinced that they have “great potential for appreciation”.

Specifically, Árima has purchased one building on Calle María de Molina on the corner with Príncipe de Vergara, and another one on the intersection of Paseo de la Habana with Avenida de Alfonso XIII, for €31 million in total.

Moreover, the Socimi has signed a commitment to acquire another two office buildings, located in the northeast of Madrid, for €63 million, which will materialise in January 2019.

With these two operations, Árima is purchasing its first buildings after it made its stock market debut without any assets in October and through which it raised €100 million, a third of the €300 million initially planned.

“With the purchase of these assets, Árima is reaffirming its business plan presented during its IPO and the good investment opportunities that the Spanish real estate market offers”, said the CEO of the firm, Luis López de Herrera-Oria, in a statement.

Original story: La Vanguardia 

Translation: Carmel Drake

Héctor Colonques Acquires 4.9% of Árima for €5M

29 October 2018 – Europa Press

Héctor Colonques Moreno (pictured below, centre), the controlling shareholder of Porcelanosa, has acquired a 4.99% stake in Árima, the company constituted by the former CEO of Axiare, José Luis López de Herrera-Oria, which made its stock market debut last week with a public share offering (OPS).

Colonques has acquired half a million shares in the firm, a package worth €5 million based on the share price of €10 that was set for the IPO.

Nevertheless, that stake is currently worth €4.65 million, given that the firm’s shares are trading at around €9.30.

The investment by the co-owner of Porcelanosa follows others made by institutional investors, which are emerging in the days following the firm’s placement in the register of Spain’s National Securities and Exchange Commission (CNMV).

In this way, Bank of Montreal has acquired 9.79% of the share capital of the new Socimi, whilst Morgan Stanley has purchased 9.4% and the fund Pelham Capital another 9.9%.

Árima made its stock market debut last Tuesday, 23 October, after reducing its OPS by one third. It was set at €100 million in the end and its placement period was extended by several days (…).

Original story: Europa Press 

Translation: Carmel Drake

British Fund Pelham Acquires 10% of Árima

25 October 2018 – Eje Prime

Árima has opened the door to British capital. The UK fund Pelham Capital has declared a stake of 9.98% in the new Socimi from Luis López de Herrera-Oria (pictured below), according to a statement filed by the company with Spain’s National Securities and Market Commission (CNMV).

The new real estate vehicle of the former founder and CEO of Axiare (which was taken over by Colonial) has convinced the London-based firm to enter its share capital by acquiring 999,028 shares, worth €9.5 million, on the basis of the real estate firm’s current share price.

After completing its debut on the main stock market, with a dip of 10%, Árima’s share price recorded a slight upturn on the second day of trading, with an increase of 5.56%.

It is expected that, over the coming days, other funds and institutional investors will be revealed that have participated in the €100 million capital increase that Árima launched to complete its stock market debut. Initially, the Socimi had intended to raise up to €300 million, but it lowered its expectations in light of the unstable situation in the markets.

Original story: Eje Prime

Translation: Carmel Drake

López de Herrera-Oria Forgets Axiare & Launches a Socimi to Invest €300M

5 October 2018 – Eje Prime

Following Colonial’s takeover of Axiare, Luis López de Herrera-Oria (pictured below) is reinventing himself with Arima. The former CEO of Axiare has constituted a new Socimi that plans to raise €300 million to invest in the real estate market.

The new company will centre its efforts on the office market in Madrid, the star segment for the now extinct Axiare, which will account for 80% of its investments. Barcelona and logistics assets will also be of interest to the Socimi.

The return of López de Herrera-Oria to the real estate sector, as revealed by Eje Prime in June, is expected imminently and his new vehicle is expected to debut on the main stock market without first starting out on the Alternative Investment Market (MAB). In fact, Arima’s stock market debut could even happen before the end of October, according to Expansión.

Alongside the executive, a serial entrepreneur in the real estate business, one of his right-hand men at Axiare, Chony Martín Vicente-Mazariegos, who used to be the Socimi’s Finance Director, will be immersed in the project. Similarly, some of López de Herrera-Oria’s other trusted directors will form part of Arima’s new project, including Guillermo Fernández-Cuesta, Fernando Arenas and Stuart McDonald. Arima means soul in Basque.

Since February, when Colonial completed its successful takeover of Axiare and merged the Socimi into its group,  López de Herrera-Oria has kept a low profile. The director pocketed €26.4 million from the sale of the package of shares that he owned in the manager.

Original story: Eje Prime

Translation: Carmel Drake