Euronext Access Vies With MAB for Socimis

11 December 2019 – Euronext Access is increasingly competing for listings of socimis with Spain’s Alternative Market (MAB). The stock exchange is comparable to the MAB in that it is aimed at companies with smaller capitalisations. Euronext, however, has the added benefit of lower costs and requirements.

Those benefits, together with Euronext’s pan-European reach (with a presence in Belgium, France, Ireland, the Netherlands, Portugal, Norway and the United Kingdom), are leading a growing number of socimis to opt for a listing in Paris instead of in Madrid.

Armabex, a specialist firm in placing socimis in the MAB, is currently working with ten firms looking to debut on the French stock market in 2020. The president of the firm predicts that 20 or 25 Spanish socimis will opt for a listing on Euronext next year. If that turns out to be true, it would be a major blow to the MAB.

Since 2013, ninety-one socimis have listed in Spain, and seven of those are already trading on Euronext Access.

Original Story: El Confidencial – Ruth Ugalde

Photo: Reuters

Adaptation/Translation: Richard D. K. Turner

Residential Assets Displace Offices as the Leading Investment Choice for New Socimis

23 August 2018 – El Confidencial

The configuration of the investment map of the Socimis on the Alternative Investment Market (MAB) has changed drastically following the recent incorporation of the company owned by Santander, BBVA, Acciona and Merlin Properties. With a portfolio comprising 10,700 homes, Testa has placed the residential segment in first position on the investment ranking of new listed companies, relegating the office sector to third place.

In this way, of the 14 new joiners to the MAB so far this year, 30.8% have housing as the main or significant target of their investments, compared with 12.8% of the 20 new companies that made their MAB debuts in 2017. With this boost, offices, which had led the ranking until now, have been relegated to third place with 15%.

The weight of retail premises is also striking since they have increased from 6% to 23%, according to data from Armabex. Beyond specialisation, registered advisors also highlight the leading role of international investors, which account for 43% of the new listed companies.

“The rate of new joiners is expected to continue and this year, we are going to comfortably exceed the total figures recorded last year (44 companies), to more than 70”, said the President of Armabex, Antonio Fernández. Currently, there are 59 Socimis trading on the MAB, which account for 60% of the one hundred or so companies that participate in the Alternative Investment Market.

In terms of the upcoming debuts, the Socimi from Bankinter specialising in the hotel sector, Atom Hoteles, is planning its launch. Other examples include Haya Real Estate, Vía Célere and Azora, whose plans to debut on the stock market have been delayed due to the instability in the international financial markets, the political uncertainty in Spain and the evolution of the businesses themselves. The most recent to debut, at the beginning of August, was Mistral Patrimonio, whose activity focuses on rental homes.

“These companies have evolved towards greater specialisation. They started leading tertiary assets to move towards housing and, now, they are opening up to other segments such as hotels, residences, healthcare complexes, gas stations, etc.”, says Fernando Vives, Technical Director at Alia Tasaciones.

An annual valuation

To ensure transparency, the regulations require that these investment vehicles are listed on a regulated European market, be it the main stock market, the Euronext or the Alternative Investment Market, in a maximum period of two years following their constitution.

Nevertheless, the stock market listing is not the only method of transparency. The MAB has just introduced a new requirement that obliges companies to issue more reports. They will be obliged to undertake an annual valuation of their assets, beyond the initial assessment. (…). “The measure obliges Socimis to provide more information and to incur expenses, but it is very positive at the macroeconomic level and for investors”, says Antonio Fernández (…).

“The Socimis have brought confidence back to the real estate sector after the real estate bubble burst. They are here to stay, taking advantage of the upwards cycle and they will continue to activate the real estate market, above all for tertiary use until at least the end of the cycle (…)”, says Vives.

Original story: El Confidencial (by E. H.)

Translation: Carmel Drake

Socimi AP67 Debuts on the MAB with Aim of Doubling its Portfolio

8 May 2018 – Eje Prime

AP67 rang the bell on the Alternative Investment Market (MAB) for the first time this morning. The Socimi debuted on the stock market with a preliminary share price of €6.65, which corresponds to an overall company valuation of €34 million. The aim of the company is to double its portfolio over the next few years through the purchase of new assets.

The real estate investment company is the sixth Socimi to make its debut on the MAB so far this year, which further strengthens the presence of this type of player in the Spanish real estate sector. In the case of AP67, the company has debuted with a portfolio worth €46.5 million comprising assets of all kinds located in Leganés (Madrid).

Gesvalt has acted as the external advisor to the operation, whilst Armabex has worked as the registered advisor for the stock market debut of the company, which is owned by Álvaro Rubio Garzón and Francisco Escudero López.

The Socimi owns small- and medium-sized plots of urban land for residential use, as well as commercial premises, parking lots and industrial land. In addition to the new purchases that it plans to make, the company aspires to “continue to generate returns of more than 8%”, according to its president, Álvaro Rubio.

Original story: Eje Prime

Translation: Carmel Drake

Investors Increase their Commitment to Rental Housing

3 May 2018 – Expansión

The boom in the residential market, the changing habits in society, the difficulties involved in accessing housing and the increase in mobility have all led to a rebound in the residential rental market in Spain. According to the latest data from Eurostat, more than 22% of Spanish households live in rented properties, although that figure is still well behind the average for the European Union (34%).

In addition, the State Housing Plan, which seeks to encourage rental amongst the younger generation, and the greater professionalisation of the sector, is going to serve to further boost the rental market in Spain.

The change in trend, as well as the increase in residential rental yields, has compelled investors to analyse this business as an alternative to other real estate assets such as offices, shopping centres and hotels.

To lead this market, certain players have redoubled their commitment to rental housing, such as the case of Testa Residencial – the Socimi in which Santander, BBVA, Acciona and Merlin hold stakes – which owns almost 9,300 residential rental properties, with a gross value of €2.275 billion and annual rental income of €72.2 million.

Stock market debuts

That Socimi is preparing its leap onto the market, which will be carried out through an offer of its existing shares (OPV) and an issue of new shares (OPS) aimed exclusively at qualified investors.

One of the first players to back this business was Blackstone, which purchased 18 residential developments, containing 1,860 homes in total, in the Madrilenian neighbourhoods of Carabanchel, Centro, Villa de Vallecas and Villaverde from the Municipal Housing and Land Company of Madrid (EMVS) in July 2013. In 2015, the fund debuted its Socimi Fidere on the MAB (Alternative Investment Market) with 2,688 social housing properties, including those acquired from the EMVS two years earlier. Currently, Fidere owns around 6,400 homes for rent.

The fund also debuted Albirana on the MAB in March 2017 with a portfolio of 5,000 rental homes proceeding from Catalunya Banc loans. Another star of the real estate sector that has detected an opportunity in the rental sector to offload its assets is the Company for the Management of Assets proceeding from the Restructuring of the Banking System (Sareb) with Témpore Properties. That Socimi debuted on the MAB in April with a portfolio of 1,553 residential units, which have a gross value of €175 million.

Another player is Vivenio Residencial, the investment vehicle created by the Dutch pension fund APG together with Renta Corporación. Vivenio has invested around €200 million in the purchase of properties and now owns more than 1,000 rental homes. The Socimi plans to debut on the stock market in 2019.

According to data from Armabex, in 2017, five new Socimis debuted on the stock market with residential assets in their portfolio. In total, at the end of last year, 16 Socimis held rental homes in their portfolios, including, in addition to Fidere and Albirana, Vitruvio, VBare, Colón Vivienda and Domo.

In addition to the listed Socimis, other players in the sector include the real estate managers. One of the largest by volume of assets under management is Anticipa Real Estate, owned by Blackstone. Anticipa currently manages 12,000 homes proceeding from banks acquired by the fund during the crisis. Anticipa manages Albirana’s homes, amongst others.

Another star in the rental home manager sector in Spain is Azzam Vivienda – a subsidiary of Azora – which has more than 11,000 homes under management distributed across 140 buildings.

Azora, which will make its debut on the Madrid stock market on 11 May, plans to raise up to €500 million from its stock market debut to co-invest with its partners in various assets, including in the residential sector.

New players

The company founded by Concha Osácar and Fernando Gumuzio in 2003, was managing €1.5 billion in residential assets at the end of last year, which represented 33.4% of its total portfolio. It plans to increase its footprint in the sector to have between €1.3 billion and €1.6 billion under management by 2022 in homes, accommodation for the elderly and assets relating to healthcare.

Despite the increasing prominence of the rental sector, the business is still very fragmented and one of the challenges for the sector is to gain scale in order to compete. Juan Manuel Acosta, CEO of Greystar in Spain, said in an interview with Expansión in February that the US real estate investment firm is looking for opportunities to become one of the largest operators in the residential rental market in Spain.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Spain’s First Listing Sponsor is Launched: Armanext

17 April 2018 – Eje Prime

From the Alternative Investment Market to Euronext. Some of the team members from Armabex, the company that specialises in the incorporation of Socimis onto the MAB, have joined forces for the launch of Armanext, the first listing sponsor (registered advisor) in Spain authorised by the leading stock market in the Eurozone, Euronext, which integrates the stock markets in Paris, Brussels, Amsterdam, Lisbon and Dublin.

The company is going to be able to advise, supervise and coordinate the admission of Socimis and SMEs onto the following markets: Euronext Access Paris, Euronext Access Lisbon, Euronext Growth Paris and Euronext Growth Lisbon. The companies that start trading on Euronext will have access to a market comprising around 1,300 companies and more than 5,000 investors around the world.

“From now on, Spanish Socimis are going to be able to comply with the requirement to be listed on an organised market such as the main Euronext market or on a Multi-lateral Trading System such as the Euronext Access and Euronext Growth markets, as permitted by the regulations”. “The pan-European stock market allows companies to opt for more flexible (financing) conditions adapted to suit family groups and SMEs, which require the intervention of an authorised listing sponsor (…)”.

Armanext is going to be led by Antonio Fernández, President of Armabex, Ana Hernández and Rafael Núñez. Hernández will provide experience in the securities and Socimi markets, whilst Núñez has a well-established track record in tax matters and business restructurings, gained during his time as a partner of two Spanish audit firms.

In September last year, Euronext opened offices in Spain, Italy, Germany and Switzerland with the aim of helping SMEs in those countries to develop their businesses on a larger scale through the securities markets.

Since then, several Spanish and European companies have expressed their interest in listing on Euronext and entering the Pan-European market. In the last month alone, two new companies joined Euronext from outside their domestic markets. On the one hand, the British pharmaceutical company Acacia Pharma made its debut on the Euronext Growth in Brussels whilst, on the other hand, the Italian company specialising in dental technology MediaLab started trading its shares on the Euronext Access market in Paris.

Original story: Eje Prime

Translation: Carmel Drake

Housing: The Bastion of the Socimis on the MAB

14 December 2017  – Expansión 

More than fifteen of the listed Socimis have residential properties in their portfolios. Alternative assets are also sneaking into the portfolios of many of the companies that trade on the MAB.

Homes, offices, hotels, shops, warehouses, land under development, health centres, student halls and even gas stations. The 44 Socimis that are currently listed on the Alternative Investment Market (MAB) are involved in the rental of all kind of assets, but housing is the star for these listed vehicles, which currently hold more than €12.22 billion in their portfolios and capitalise €6.835 million.

In this way, in contrast to the scarce presence of rental housing owned by the vehicles listed on the main stock exchange, housing accounts for 21.9% of the portfolios of the Socimis on the MAB. Specifically, of the firms specialising in residential, a few stand out: Fidere – the Socimi owned by Blackstone which made its stock market debut in 2015 with 2,688 social housing properties purchased during the crisis – and Colón – and rental housing Socimi controlled by Azora, which debuts on the stock market in June. Altogether, 16 companies have residential assets in their portfolios, according to data from Armabex.

After housing, offices account for 20.4% of the assets in the Socimis’ portfolios, followed by shopping centres (14.2%), shops (13.9%), industrial warehouses (6.3%) and hotels (5.7%).

In terms of geographical distribution, Madrid leads the investment by Socimis, with €5.684 billion – 46.5% of the total -, whilst Barcelona accounts for 11.2%, with €1.364 billion. The other assets – €4.34 billion – are located across the rest of Spain.

In terms of the investor profile, the main stars on the MAB are non-resident, accounting for 55.1% of the assets incorporated. In 2017, seven Socimis owned by non-resident investors joined the MAB, with assets worth €1.388 billion.

Trends

For Antonio Fernández, President of Armabex, the trend over the next few months will be characterised by fragmentation and specialisation. For example, of the 17 new companies listed in 2017, two specialise in hotels –Bay Hotels & Leisure (the Socimi owned by Hispania and Barceló, which made its debut in the summer) and Elaia Investment Spain (previously Eurosic Investment Spain, which debuted in November)-, one owns gas stations – Kingbook Inversiones –, and more recently, one specialises in industrial warehouses – P3 Spain Logistic –.

The latter is a Socimi of Socimis, in other words, a Socimi that controls 100% of another company of the same kind, which is not listed but which has the same obligations and tax benefits as a regular Socimi. “46% of all Socimis own other non-listed Socimis. It is a structure that is used a lot when it comes to constituting asset portfolios. It allows companies to be sold and new shareholders to enter individually”.

In this company structure context, we are also starting to see investors crossing between Socimis. In this way, for example, the Singapore fund features in the share capital of P3 Spain Logistic and GMP. Similarly, the financial institutions have bet on this vehicle for their real estate assets. In this way, Banca March will debut a Socimi that owns the ABC Serrano shopping centre, which it acquired from CBRE Global Investors in June, and Sareb is preparing for the debut of Témpore Properties.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Armabex: The MAB’s 44 Socimis Have a Combined Asset Value of €12.2bn

12 December 2017 – Eje Prime

The Socimis are still a major talking point in the Spanish real estate sector. Together, the more than forty Socimis that are listed on the Alternative Investment Market (MAB) own assets with a combined market value of €12.221 billion, according to the report Armabex Analysis II. This year alone, seventeen new Socimis have been incorporated onto the MAB.

According to the findings of the report, the average market capitalisation of all of the Socimis currently listed on the MAB amounts to more than €155 million and their average own funds represent 62%. “The Socimi has become a fundamental element in the growth of the real estate market”, explains Antonio Fernández, President of Armabex.

Of the Socimis currently listed on the MAB, 31 have offices and homes amongst their properties available for rent and their market value represents 42% of the total. In 2017, nine of the seventeen new Socimis that debuted on the MAB held both types of assets in their portfolios.

Nevertheless, shopping centres, gas stations, hotels and industrial warehouses have also found the perfect vehicle to list on the MAB in the form of Socimis. In fact, in 2017, there was an increase in the number of shopping centre Socimis (five more in 2017); the first Socimis to include warehouses made their debut (also five in 2017); and the first gas station Socimi made its debut on the MAB along with three new hotel Socimis, amongst others.

By investment destination, Madrid has consolidated its position as the Spanish province in which Socimis invest the most in 2017. In this sense, thirteen of the seventeen new Socimis that started to trade in 2017 own real estate assets in Madrid. In this way, the 32 Socimis listed on the MAB that own assets located in the capital, have real estate assets worth €5.684 billion, which account for 46% of the total asset valuation.

Meanwhile, the evolution in Barcelona has been less satisfactory than expected; the portfolio of assets located in that province owned by the Socimis account for 11% of the total asset valuation, or €1.364 billion. Only five of the seventeen new Socimis that joined the MAB in 2017 own real estate assets in the Catalan capital.

Original story: Eje Prime

Translation: Carmel Drake

The MAB Gets Ready To Receive A New Wave Of Socimis

5 October 2017 – Expansión

Socimis have become the shining stars of the stock market and the undisputed protagonists of the real estate sector. Over the last four years, in addition to the large five listed Socimis – Merlin, Colonial, Hispania, Axiare and Lar España – , 40 vehicles of this kind have been incorporated into the Alternative Investment Market (MAB) and experts predict that, far from slowing down, the flood of stock market debuts is going to continue for the next few months at least.

Specifically, they estimate that around a dozen new vehicles are set to debut on the Madrilenian stock market. “We calculate that the total number of Socimis listed on the market could reach 50 by the end of 2017. At Armabex, we have 14 processes open for new Socimis, which will be making their debuts between 2017 and the first quarter of 2018”, explains Antonio Fernández, President of Armabex.

“You could say that we are facing the second wave of Socimis, but their growth prospects, until they reach the €40 million or €50 million mark, are still very broad”, explains Sandra Daza, Director General of Gesvalt. For Daza, the tightening of the access requirements to the MAB for Socimis, especially in terms of the diffusion of shareholders, will avoid the appearance of a distinguished group of small Socimis, focused solely on the fiscal benefits and not oriented towards the professionalism of their asset management.

Moreover, analysts expect to see greater specialisation in the field of the Socimis and consolidation of the sector over the medium term. “Gradually, over a period of three to five years, we will see the start of a new model of Socimi: those that arise as a result of mergers and acquisitions. This movement will result in the consolidation of the structure and the creation of some more heavyweight Socimis”, explains Fernández.

For Daza, the specialisation of Socimis in alternative assets within the real estate sector will be a process that will push ahead gradually: “For a Socimi to be a good investment vehicle, it requires a minimum size and a development plan that alternative assets do not always allow due to the small size of the market”.

Experts rule out that a bubble is being generated. “If we analyse in detail the history of the various Socimis listed on the MAB, the majority are the result of the restructuring of pre-existing real estate companies. In other words, there were not any previous transactions, they merely represented the adaptation of existing property portfolios to a new financial-fiscal environment, the Socimis, in which their respective real estate strategies fit better”, says Fernández. For Daza, in comparison with other countries, the size of the Spanish market and our GDP indicate that we are in for “a bright future in terms of the growth in the volume of Socimis over the next three to five years”.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Domo Will Debut On The MAB In October

8 September 2017 – El Confidencial

The cooperative manager Domo now has everything in place for the debut of its Socimi on the stock market. The company led by Feliciano Conde has just submitted the incorporation document (known in the jargon of the industry as the DIM) and has received the corresponding ISIN code from Iberclear, as well as the green card necessary to be able to operate on the stock market.

With those procedures completed, the firm now just has to wait for the authorities of the Alternative Investment Market (MAB) to approve all the documentation for the Socimi to debut on the stock market. And provided there are no surprises, that procedure should happen between the end of this month and the beginning of next month. The property developer wants to ring the bell with an army of first-rate advisors, aware of the revolution that debuting on the stock market will have on its value proposition.

The Socimi has hired the law firm Pérez-Llorca as legal counsel; PwC as the auditor; CBRE as the real estate expert; and Armabex as the registered advisor and global coordinator of the whole incorporation process. Alongside all of them, the corporative manager has been working for almost two years to promote a new sub-segment within the Socimi framework, which has been included via the circular, and which allows it to also include the property development business.

To this end, these vehicles are granted more time to distribute dividends, rather than requiring that at least 80% of the assets in the portfolio are profitable from day 1 and the profits be distributed amongst the shareholders.

The major novelty of Domo Activos’ arrival on the stock market is the possibility of allowing investors in Socimis to also benefit from the property developers’ margins. In fact, the company’s road map forecasts that it will raise up to €250 million through capital increases over a period of two years, money that it will allocate to acquire buildable land on which to construct homes.

Investments amounting to €500 million

Once constructed, the homes will be rented out for a period of three years, to safeguard the tax benefits, and subsequently, they will be sold, with all the profits being shared out amongst the investors. Even before its debut on the MAB, Domo has already undertaken a €7 million capital increase, which it has used to acquire a plot of buildable land in Esanche de Vallecas (Madrid), where it started work last week to build 80 apartments.

These homes will be put up for rent from the summer of 2019, which will allow the Socimi to start distributing dividends that same year. This is the only asset with which the Socimi will make its debut on the stock market, although it will quickly start to execute its growth plans, with a capital increase planned for October, through which it hopes to raise between €20 million and €50 million to acquire plots of land that it has already identified.

Focused in Madrid, but also interested in buildable plots in Málaga and Palma de Mallorca, Domo Activos will be a genuine collective investment vehicle, given that from the start it will have 54 investors and none of them will hold a majority stake. The largest shareholder will be Domo, with a 5% stake. With the €250 million that the entity plans to raise, it should be able to undertake operations amounting to €500 million, given that its objective is to maintain a leverage level of 50% and to offer annual returns of 10%.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Colón Viviendas Socimi Will Debut On MAB With Value Of €19M

15 June 2017 – Invertia

The MAB’s Coordination and Incorporations Committee has submitted a favourable report to the Board of Directors regarding the debut of Colón Viviendas on the stock market, after analysing the documentation presented by the company, according to a statement issued yesterday by the Spanish Stock Exchanges and Markets (BME).

If it receives the green light from the MAB’s Board of Directors, Colón Viviendas will become the thirty-fourth Socimi to debut on this market.

The company’s trading code will be “YCOL” and its shares will be traded through the “fixing” system, which fixes their price twice a day.

Taking into consideration the valuation report prepared by the independent expert CBRE Valuation Advisory, Colón Vivienda’s Board of Directors has set a reference value for its shares of €2.13, which represents a company market valuation of €19 million.

Armabex is the Socimi’s registered advisor and BNP Paribas España is acting as the liquidity provider.

Colón Viviendas Socimi is a real estate company dedicated to investing in residential rental assets and it is managed by Azora Gestión SCIIC.

Original story: Invertia

Translation: Carmel Drake