Tag: BMB Investment Management

BMB Launches a Socimi to Invest €100M in Industrial Warehouses

16 October 2018 – Eje Prime

BMB Investment Management is betting on the tertiary sector. The fund manager is finalising the launch of a new Socimi to invest €100 million in the purchase of industrial warehouses.

After entering the residential market with two Socimis (Optimum Re Spain and Optimum III Value-Added Residential), the company led and chaired by Josep Borrell is now looking for higher returns with its latest firm, Optimum Rentals Socimi. This new investment vehicle will focus on the acquisition of assets that offer returns of between 6.5% and 10%, according to reports from Expansión.

The intention of BMB is that 80% of the budget will be allocated to the purchase of industrial warehouses, leased to solvent tenants and located in the industrial parks of Madrid and Barcelona.

Similarly, although Borrell rules out investing in logistics, he does not shy away from the idea that the fund may also take advantage of an opportunity or two in the residential sector or even in the hotel or retail markets.

Optimum Rentals Socimi is starting life with an initial budget of €100 million, of which €50 million will proceed from own funds and the remainder, from bank financing. Sources at the manager confirm that the plan is to maintain the fund in an independent way so that it will live off of its own income. Investors in BMB’s third Socimi are expected to include both institutional and real estate players, and the percentage of international capital is expected to be high.

Original story: Eje Prime

Translation: Carmel Drake

Optimum III Acquires Residential Building in Terrassa for €1.5M

29 January 2018 – Eje Prime

The Socimi Optimum III is starting 2018 in the same way that it finished 2017: by going shopping. The Catalan company has purchased a package of assets comprising 17 homes and 31 parking spaces in Terrassa, a town on the outskirts of Barcelona, according to a report filed by the listed company with the Alternative Investment Market (MAB).

This latest purchase follows those undertaken by the Socimi in recent weeks in both the Catalan capital and Madrid. It has acquired a residential building in Hospitalet de Llobregat, and an office building in the centre of the Spanish capital.

The Socimi’s newest asset spans 1,497 m2 and, besides the 17 homes, contains two storerooms. The company, controlled by BMB Investment Management and Bluemountain, has reported that 100% of the apartments are already occupied, mainly on a rental basis (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Optimum III Buys 48 Homes & 5 Shops on Outskirts of Barcelona

22 December 2017 – Eje Prime

Optimum III’s final push in 2017 is proving dizzying. In its latest deal, the Catalan Socimi has acquired a package of assets containing 48 homes, 5 shops and 39 parking spaces in Rubí, a town on the outskirts of Barcelona, according to a statement issued on Friday by the company, which is listed on the Alternative Investment Market (MAB).

This purchase follows a series of acquisitions in recent weeks in the same Catalan city, where it bought a residential property in Hospitalet de Llobregat, as well as in Madrid, where it purchased an office building in the city centre.

The Socmi’s new asset has a surface area of 6,548 m2 and, as well as containing almost fifty homes, includes 51 storerooms. The company, controlled by BMB Investment Management and Bluemountain, has reported that 80% of the homes are already occupied, mainly under lease contracts, but just one of the five shops is currently leased (…).

Original story: Eje Prime

Translation: Carmel Drake

Optimum III Buys Residential Building In Barcelona For €6.6M

6 July 2017 – Eje Prime

Optimum III, the residential Socimi created by BMB Investment Management and the US fund Bluemountain, is continuing to grow its portfolio of assets with new purchases. In its latest deal, the company has acquired a residential building in the neighbourhood of Sarrià-Sant Gervasi, in the upper area of Barcelona. The purchase of this property has seen the group invest €6.6 million.

The property is located at number 46 on Calle Calaf, in one of the most expensive districts in the Catalan capital. Until recently, Sarrià-Sant Gervasi was the most expensive neighbourhood in the country in which to buy a home, according to data from Tinsa’s IMIE Local Markets index. During the fourth quarter of 2016, the upper area of Barcelona became the most expensive in Spain, with an average house price per square metre of €3,901/m2, up by 8.6% compared to the fourth quarter of 2015.

Nevertheless, during the first three months of this year, the boom in Madrid saw the tables turn, with the neighbourhood of Salamanca becoming the most expensive in the country, exceeding €3,800/m2 (up by 6.8% compared to a year earlier). Meanwhile, Sarrià-Sant Gervasi was ranked in second place, with an average price of €3,778/m2 during the first quarter of the year.

Optimum III is continuing to increase its portfolio of assets (…), however, its business is different in several ways to that undertaken by its predecessor Optimum Real Estate. Firstly, due to the reactivation of the real estate market, the average price of acquisitions will now be approximately €2,500/m2 in Barcelona and €2,800/m2 in Madrid, according to the group. Secondly, the capital of Spain will play a greater role in the portfolio; the city accounted 20% of the total assets owned by the previous Socimi, whereas it will now account for 30% of the total, with Barcelona accounting for the remaining 70%.

Moreover, taking advantage of the work already performed by BMB for Optimum Re Spain between December 2016 and February 2017, Optimum III has now acquired five properties in the two cities. In Barcelona, it purchased buildings located on Avenida Diagonal at the intersection with Calle Girona, and on Calle Bruc at the junction with Calle Aragó, amongst others. BMB’s intention is to invest €100 million through the new vehicle, in the form of both acquisitions and improvements. In this way, Optimum III’s portfolio will comprise more than twenty buildings.

Optimum Real Estate, the older sister  

In parallel to Optimum III, BMB and Bluemountain are continuing to fatten up their other Socimi in Spain, Optimum Real Estate. Currently, the asset portfolio of that Socimi, which was created following the success of two vehicles constituted in 2007 to purchase residential buildings in Berlin (Germany), comprises fifteen assets located in Barcelona, in central areas such as El Eixample, Gran Vía, El Born and Ramblas, as well as one in Madrid, located at number 8, Calle San Bernardino. Optimum’s portfolio is currently valued at €63.7 million (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Optimum RE Looks Set To Buy 3 Assets In Barcelona For €7M

21 June 2017 – Eje Prime

The real estate investment vehicle manager BMB Investment Management and the US fund Bluemountain are continuing their shopping spree in Spain, through their Socimi. Optimum Real Estate will spend €7 million on the acquisition of three new assets in Barcelona, according to sources at the group. Optimum’s objective is to close the year with a portfolio of properties worth more than €70 million.

To this end, the second Socimi to be promoted and managed by BMB, is currently studying the acquisition of three assets in the Catalan capital, the city where the majority of the properties controlled by the group are located. The first is located at the junction of Calle Girona and Calle Aragón and has a surface area of 825 m2. For this residential asset, Optimum is looking at spending €2 million.

The second property for which Optimum is bidding is located on Calle Cartagena, also in Barcelona. Located in the El Eixample neighbourhood, this residential property measures 837 m2 and would require an investment of €1.8 million for the Socimi.

The last asset that Optimum is interested in incorporating into its pipeline is located at the junction of Calle Nápoles and Diagonal. It would be the most expensive of the three, given that the Socimi could end up paying almost €3 million for it – it would also be the largest, with a surface area of 1,091 m2. If Optimum were to complete these three purchases, it would end the year fulfilling its objective of owning a portfolio of assets worth more than €70 million.

“Nevertheless, although the negotiations are in an advanced stage, we are not ruling out the possibility of changing our plans and acquiring other assets over the next few months instead, whereby exceeding our objective”, explain sources at Optimum.

Currently, the asset portfolio owned by the Socimi, which was created following the success of two vehicles constituted in 2007 to buy residential buildings in Berlin (Germany), comprises fifteen assets located in Barcelona, in central areas such as El Eixample, Gran Vía, El Born and Ramblas, as well as one in Madrid, located at number 8 on Calle San Bernadino.  Optimum’s portfolio is currently worth €63.7 million.

Optimum III

In order to take advantage of the falling prices in the real estate market in Barcelona, BMB launched its third fund, Euro Re Optimum III Barcelona, focusing its experience on the residential market in the Catalan capital (…). This is a tailor-made fund aimed at private investors and family offices (…).

BMB’s intention is to invest €100 million in total with the new vehicle, through acquisitions and improvements. In this way, the portfolio of Optimum III will comprise more than twenty buildings.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

BMB Joins Forces With BlueMountain To Create New Socimi

2 March 2017 – Expansión

The hedge fund is the largest shareholder in Optimum III Value-Added Residential, which will invest up to €100 million buying residential buildings in Barcelona and Madrid.

BMB Investment Management, the real estate investment vehicle manager has launched a new project. The Barcelona-based company led by Josep Borrell Daniel has signed an alliance with the US investment firm BlueMountain Capital Management to launch the listed real estate investment company (Socimi) Optimum III Value-Added Residential, which could debut on the Alternative Investment Market (MAB) in April.

Original story: Expansión (by J. Orihuel)

Translation: Carmel Drake

Optimum RE Debuts On MAB With A €50M Residential Portfolio

28 September 2016 – Idealista

Optimum Re Spain is set to debut on the Alternative Investment Market (MAB) today (28 September). (…).

According to its market entry document, Optimum currently owns a portfolio of 14 residential buildings located in prime areas, which also receive high numbers of tourist visits. 13 of the buildings are located in Barcelona and the other one is in Madrid. The Socimi has also signed a purchase commitment to add another property to its portfolio on 31 October, located in the Catalan capital. These buildings comprise 186 flats in total and 30 commercial premises.

The document also reveals that the Socimi has paid €57 million net for those 14 properties, although their market value is estimated to amount to €108.4 million, using prices per sqm from specialist online portals such as Idealista as the benchmark. Moreover, their average occupancy rate is 75%.

The company’s strategy is to acquire entire residential buildings and then to sell them off subsequently, flat by flat, to obtain greater profits. “The company’s aim is to offer profitable investments with controlled risk and an absolute return based on a rising market driven by economic recovery: rental income and capital appreciation are being generated on the basis of selective acquisition and active management of the residential properties in Barcelona and Madrid”, said sources at the company.

The company added that, “we are diversifying our property portfolio, focusing on central areas, with a special emphasis on prime areas such as Sarriá, Eixample and Ciutat Vella in Barcelona. Similarly, we invset in mid-range areas with high demand and in tourist areas, such as the popular Gracia area in Barcelona”.

The company also admitted that its main business involves buildings, which are leased out partially or in their entirety, and that it has a limited exposure to commercial premises. “Optimum’s approach involves seeking out purchase transactions at below market prices, obtaining discounts of approximately 20%, acquiring entire buildings and, after making an investment to optimise the homes and after leasing them for 3-4 years, selling them flat by flat in order to increase the sales price”, it added.

Who are its shareholders?

This Socimi is backed by several companies, such as BMB Investment Management, Anangu Grup, Orca Invest, Finicon and Body of Knowledge, along with more than fifty minority shareholders.

And those companies are in turn owned by Catalan investors and businessmen, such as for example, the Gallardo family, owner of the pharmaceutical firm Almirall, and Ángel Javier Mirallas, Head of Prosegur in Cataluña and Chairman of the Brazilian Chamber of Commerce in the autonomous region. Other shareholders include: Joan Plensa, a relative of the Catalan sculptor Jaume Plensa, and Marc Sabe Richer, Director of Fujitsu in the UK. Josep Borrell Daniel is the Chairman and CEO of Optimum Re Spain – he is a professional investor who leads the firm BMB Investment Management.

With Optimum’s debut on the MAB, there are now 24 listed Socimis in Spain, with the Socimi Keka expected to join the ranks soon. That company manages a portfolio of commercial premises and garages in Madrid, Barcelona and Sevilla, worth €14 million and is owned by two members of the Borbón family.

Original story: Idealista

Translation: Carmel Drake