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 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

Socimi Optimum III Will Debut On Stock Market On 16 May

11 May 2017 – Expansión

A new listed real estate investment company (Socimi) will debut on the Spanish stock market next week. The company in question is Optimum III, specialising in value-added residential assets (i.e. those requiring active management to maximise their value).

The company will debut on the MAB with a reference value of €10 per share, taking the total valuation of the company to €54.03 million. The bell will ring on 16 May.

The new Socimi is the thirty-third to debut on the MAB (four others are listed on the main stock market). Its portfolio comprises six buildings, five in Barcelona and one in Madrid, all acquired within the last three months. The properties include Diagonal 333, in Barcelona, purchased in January for €12.8 million; and General Moscardó 7, in Madrid, bought in February for €14.86 million.

The Socimi’s most recent purchase involved the building on Juan de Garay 5-7, in Barcelona, which it acquired for €1.7 million on 13 April.

The company is managed by BMB, as disclosed by Expansión. That company, which is headquartered in Barcelona, has accumulated eight funds since it was founded in 2006. The firm led by Josep Borrel also manages another Socimi that is already listed on the stock market, Optimum Real Estate.

Optimum III’s main shareholder is the American investment fund Bluemountain, which owns 83.287% of its share capital. The firm Itzarri EPSV holds another 9.2541% stake, whilst another 15 shareholders own less than 5% each.

The new Socimi has set itself an investment period of 12 months, beginning on 1 March, and the aim of liquidating its assets no later than the seven years after its debut on the stock market.

Its investment target comprises value-added assets, ranging between €2 million and €20 million per property, with an average price of around €2,500/m2. Including construction work, the investment undertaken by Optimum Re Spain will reach a total of €80 million between own funds and debt.

Arcano Valores has been the placer and registered advisor to Optimum III, which will trade under the code YOVA, whilst BNP Paribas is acting as the liquidity provider.

Original story: Expansión (by Rocío Ruiz and José Orihuel)

Translation: Carmel Drake

BMB’s Socimi Will Debut On Stock Market In June

6 March 2016 – Expansión

The real estate fund manager BMB Investment Management has already raised capital amounting to €50 million for its new Socimi, Optimum Re Spain, and is getting ready to list it on the stock exchange in June. The investors, which include Spaniards and overseas financiers, are virtually the same as those who participated in its previous funds, Optimum Berlin Property and Optimum Berlin Property Two.

Those two vehicles invested €90 million in the purchase of 60 residential buildings in Berlin between 2007 and 2015. By 2013, given the rise in prices, they had already returned 50% of the capital to investors through rental income. And although the plan was to wait until 2016 to sell the properties, they received an offer for the purchase of 50 of the buildings for €125 million in 2015, which they could not refuse. Given the success of the first two funds in Berlin, the investors have wanted to take advantage of the upwards cycle in Spain.

Last year, the firm BMB created the Socimi Optimum Re Spain, through which it has already purchased nine buildings and is finalising the acquisition of other properties.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

BMB Creates A Socimi In Spain Called ‘Optimum RE Spain’

6 March 2015 – Expansión

The fund manager BMB has created a Socimi called Optimum RE Spain, whose objective is the acquisition of residential properties in Madrid and Barcelona. BMB is well known in the market as it has created several investment funds in Berlin in recent years.

Original story: Expansión

Translation: Carmel Drake