The Sometimes Overrated Boom of Spain’s Socimis

20 July 2019 – Richard D. K. Turner

BME and JLL recently presented a study of the state of Spain’s 73 socimis. From 2016 to 2018, a total of 54 socimis, 70% of the current total, debuted on the market. Last year, those same socimis paid an average dividend yield of 3.8%. The firms distributed €879 million in dividends in 2018, up from €581 million in 2017, +51.4% year-on-year.

While the total stock market capitalisation of the socimis increased by 19.6% last year, compared to the IBEX 35’s fall of 15%, the Spanish market is still relatively small compared to the rest of Europe.  Only four of the socimis listed on the continuous market. The Spanish market ranks fourth out of eleven, behind the United Kingdom, France and Holland. Moreover, while Spain accounts for 31.5% of the total number of socimis in the EU, their assets represent just 12% (26.740 billion dollars at the end of March). The average socimi in Spain is valued at 371 million dollars; compared to €1.371 billion in the United Kingdom; €1.99 billion in France and a whopping €5.35 billion in the Netherlands.

Foreigners also accounted for the lion’s share of investment in Spanish socimis. According to the study, 75% of the investment in the office sector came from outside of the country, 85% of that in logistics and 80% of the investment in retail.

Original Story: ABC Inmobiliário

72 Socimis Have Made €50 Billion in Investments Since 2012

5 July 2019 – Richard D. K. Turner

A new study by the Bolsas y Mercados Españoles (BME) and JLL, called ‘Socimis. Stability and investment in the real estate sector. Market Report 2019,’ emphasised the growing importance of socimis in the Spanish economy and capital markets. Socimis have provided an alternate source of financing for the real estate market, coming at an opportune time after the financial crisis at the beginning of this decade.

Since the regulatory framework governing the investment vehicles, similar to REITs in the United States, was established in 2012, investors have created 72 socimis. Those firms have a total current real estate investment volume of 50 billion euros and a capitalization of more than 22.3 billion euros. Those same socimis have generated more than €2.1 billion in rents (+ 25% y-o-y) and net profits of 2.37 billion euros, with a dividend yield of 3.8% last year.

Original Story: Valenciaplaza


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

GreenOak’s Socimi, Gore Spain Holdings, Debuts On The MAB

18 January 2017 – Expansión

The company Gore Spain Holdings Socimi will debut on the Alternative Investment Market (MAB) on Thursday (19 January), after the MAB’s Board of Directors approved its incorporation into the Socimi segment, having analysed the information presented by the company and after the Coordination and Incorporation Committee issued a favourable assessment report.

On the basis of the share valuation report prepared by the independent expert CBRE Valuation Advisory, the company’s Board of Directors has set a reference value of €14.58 for its shares, which represents a total market capitalisation of €144 million.

Gore Spain Holdings Socimi will be the twenty-ninth Socimi to join the MAB. The company’s trading code will be “YGRE” and its shares will be traded through a price fixing system.

According to a statement by the Spanish Stock Exchange (BME), Renta 4 Corporate is the Registered Advisor for the operation and Renta 4 Banco is the Liquidity Provider.

Gore Spain Holdings Socimi is the parent company of a group that comprises 18 fully owned subsidiaries, of which 17 have opted to operate under the Socimi structure, designed for the acquisition and rental of properties in Spain. The group currently owns 20 assets and has a single shareholder, GreenOak Spain Investment.

Original story: Expansión

Translation: Carmel Drake

Paralysis In Trading Amongst The MAB’s Socimis

17 January 2017 – Idealista

The Alternative Investment Market (MAB) has become the catapult for many small Socimis – the real estate investment vehicles that are obliged to debut on the stock market to maintain the tax benefits that they enjoy.

Currently, this platform is home to 28 such companies, of which 17 debuted during 2016, however, not all of them are attracting the attention of investors. What’s more, one in five is trading today at the same price per share at which they debuted and some of them haven’t registered any movements in their share prices at all, which means that they are not being traded.

Examples include some of the most recent companies to debut. One of them is Inmofam 99, a Socimi that has 10 commercial and residential assets in its portfolio, which is owned by the Hinojosa family, the founder of the Cortefiel textile group. It debuted on the MAB on 21 December 2016 at a price of €17.60 per share and it is still trading at that price almost one month later, according to data from BME, the company that manages the Spanish stock market.

The same is happening with RREF II Al Breck, which debuted on the MAB on 30 November 2016, at a price of €5.40 per share, the same price at which it is currently trading. This Socimi, controlled by a company headquartered in Luxembourg, is the owner of almost 700 assets, mainly homes located in Madrid, although it also owns retail premises, one office and several storerooms, garages and basements.

Another Socimi that finds itself in the same situation is Euro Cervantes, a company that holds two investment stakes in its portfolio: one 30% stake in GMP, the owner of homes, offices and land, and one 49% stake in La Maquinista shopping centre, the largest in Barcelona. This vehicle is owned by the Government of Singapore and has been trading at €31 per share since 22 September 2016.

Corona Patrimonial and Heref Habaneras are also experiencing very similar situations. (…).

These five Socimis together have a combined market value of €353.8 million, a figure that increases to more than €900 million in we include Zambal Spain, which has also been having a tough time. This vehicle, which owns several offices and retail premises, whose tenants are giant businesses operating in Spain, has been trading for almost 14 months (it debuted on the MAB on 1 December 2015…). It is currently trading at €1.24 per share, the same level at which it debuted, although its shares have been traded significantly. During its first month on the market, the company moved 10,000 shares and €13,000, whilst during 2016 as a whole, it moved half a million in both shares and cash. (…).

Trading plummets during first fortnight of 2017

A certain degree of apathy is being observed amongst the Socimis on the MAB in these early stages of the year. Some other vehicles should be added to the list above, including Corpfin Capital Prime Retail, Fidere Patrimonio, GMP Property, Hadley Investments, Inversiones Doalca and Mercal Inmuebles. In fact, of the 28 Socimis trading on this platform, only five have been traded, to a greater or lesser extent, during the first fortnight of January.

The most liquid of all of them is Entrecampos Cuatro, the first Socimi to debut on the stock market (back in November 2013) and whose portfolio mainly contains homes, premises, offices and land. In two weeks, this vehicle has seen 188,000 shares traded for €350,000.

The second most liquid has been Trajano Iberia…with 9,000 shares traded for €91,000. It is followed by the office specialist Autonomy Spain Real Estate (3,000 shares traded for €51,000); Vbare Iberian Properties (2,000 shares traded for €32,000); and Optimum RE (€3,000 traded). The latter two hold homes in their portfolios.

As such, and despite the fact that investors do not normally back Socimis on the MAB (because they are smaller entities with less liquidity…), it is true that we have found some companies that have managed to increase their value by double digits since they debuted on the platform, such as Entrecampos and Optimum, which are amongst the few that have seen movement in their shares during the first two weeks of the year.

Original story: Idealista (by Ana. P. Alarcos)

Translation: Carmel Drake

Socimi Inmofam 99 Will Debut On The MAB On 21 Dec

19 December 2016 – Finanzas

The Socimi Inmofam 99 will debut on the Alternative Investment Market (MAB) on Wednesday 21 December, at a price of €17.60 per share, according to the BME.

This price values the company at €38.83 million. Inmofam 99 owns a portfolio of retail premises located on the main shopping streets of a number of Spanish capital cities, as well as one residential building in Oviedo.

The portfolio includes a shop on Calle Raimundo Fernández Villaverde in Madrid and another two on Paseo Zorrilla in Valladolid.

On the financial side, Inmofam 99 has two loans, granted by the entity Banca March and both are secured by mortgaged assets. The first, amounting to €2.48 million, expires in December 2019 and €1.72 million has been drawn down to date. The other, amounting to €3.90 million, matures in 2022 and €3.12 million has been drawn down so far.

This is the 27th Socimi to debut on the MAB in 2016 and, like its predecessors, it will begin trading by means of a price fixing system.

Original story: Finanzas

Translation: Carmel Drake

Socimi Quonia Will Debut On The MAB On 18 July

13 July 2016 – Expansión

The Socimi Quonia will debut on the Alternative Investment Market (MAB) on Monday (18 July), to become the twentieth listed property investment company to join the market.

On the basis of the valuation report from the independent expert, Ernst & Young Servicios Corporativos, the company’s Board of Directors has set the reference value for each one of its shares at €1.65, which represents a market capitalisation for the company of €41.97 million.

The company will list using the price fixing system, according to a statement by Spain’s Stock Exchanges and Markets (BME).

The company owns a portfolio comprising rental properties used for residential and commercial purposes, located in Barcelona, Sevilla and Langreo (Asturias), with a total gross leasable area (GLA) of 12,197 sqm, excluding one ground-level car park containing 50 spaces and another underground car park containing 93 spaces.

VGM Advisory Partners is the registered advisor of the company and Santander Investment Bolsa is acting as the liquidity provider.

In the last two weeks, the Socimis Vitruvio Real Estate and Asturias Retail and Leisure, have also joined the MAB. The latter owns the Intu Asturias shopping centre, amongst other assets.

Original story: Expansión

Translation: Carmel Drake

The BME Suspends Trading Of Obsido’s Shares

3 May 2016 – Gestiona Tu Dinero

The Board of Directors of ‘Bolsas y Mercados Españoles’ (BME or the Spanish Stock Exchanges and Markets) has suspended trading of shares in the Socimi Obsido, after the company reported that it was unable to provide its audited annual accounts for 2015 to the Alternative Investment Market (Mercado Alternativo Bursátil or MAB) within the timeframe prescribed by law. The company’s shares have plummeted by 62% since its debut last year.

In a significant event notice, the company explained that the reason for the delay “comes as a result of internal difficulties, although the annual accounts and management report were unanimously approved by the Board of Directors at the general shareholders’ meeting, which was held on 25 March 2016”. Sources at the company insist that the accounts will be published “as soon as possible, and, at the very latest, within the next week”, according to the notice dated 30 April.

Obsido debuted on the MAB on 4 September 2015, in a year marked by a flood of IPOs by the Socimis. But it has followed a very different path to those taken by other firms in the sector, with its share price plummeting by 62%, from €19.40 at its debut to its current value of around €7.22.

Obsido was the first Spanish company with Norwegian shareholders to list on the Spanish stock exchange and the seventh Socimi to join the MAB family. At the time, its assets comprised two hotels in Costa del Sol: the Hotel Marbella Inn and the Diana Park apart hotel, the first is located in the centre of Marbella and the second in the town of Estepona.

The company was founded in 2014 with a share capital of €5,512,930, distributed between the Founding Partners, including the Spaniard Joaquín Hinojosa and the Norwegian Häkan Tollefsen, along with almost one hundred Norwegian investors who held the remaining 33.66% stake.

Sources at Obsido are committed to acquiring projects, tourist complexes and hotels in good locations and with potential to be done up. They acquire assets to refurbish them and fit them out. According to the explanation provided by the Socimi in its brochure when it joined the MAB, it wants to focus on establishments “where the current owners have financing problems” or “those whose structures may be improved, through a proper and considered injection of capital”.

Original story: Gestiona Tu Dinero (by Clara Alba)

Translation: Carmel Drake

Saint Croix Socimi To Debut On The MARF

1 October 2015 – Expansión

The Socimi Sainx Croix, owned by the Colomer family, registered its first fixed income program yesterday, for up to €80 million on the Alternative Fixed Income Market (‘Mercado Alternativo de Renta Fija’ or MARF), a financing option launched by the Government in 2013 to facilitate SMEs’ access to capital markets. In this way, Saint Croix became the first Socimi to turn to this market in search of financing.

According to a statement by the BME yesterday, Saint Croix plans to allocate the funds that it will raise through this bond issue to the acquisition of new assets and the maintenance of existing assets in its current portfolio.

Renta 4 coordinated the management and structuring of the plan and will act as the underwriter for the bond issues that are carried out. Axesor Ratings has assigned the issuer a BBB rating with a stable outlook, in other words, it is classified it as investment grade. Ramón y Cajal Abogados was engaged to provide legal advice for the design and registration of the program.

Saint Croix Holding, which relocated its headquarters to Luxembourg from Spain in 2014, owns 150,000 m2 of rentable space, with a total value of €284 million as at 30 June 2015. Its assets include several hotels, located in Huelva and Madrid, as well as the headquarters of CLH. The Socimi’s owners, the Colomer family, also own the real estate company Pryconsa.

The Socimi has included an explicit warning to investors in the bond issue brochure, about the political risks in Spain, making a clear reference to Cataluña (see page 32).


This  is a new debut for the MARF. In total, according to data from the BME, thirteen companies have decided to issue bonds through this market. Copasa, Pikolin, Tecnocom and Barceló are a few of the companies that have already successfully launched operations on this market.

Original story: Expansión (by D.B., M.S. and R.R.)

Translation: Carmel Drake

Deutsche’s Socimi Trajano Debuts On MAB With A 4% Rise

31 July 2015 – Expansión

The socimi Trajano Iberia, which is managed and promoted by a division of Deutsche Bank, has debuted on the Alternative Investment Market (‘Mercado Alternativo Bursátil’ or MAB) with a rise of 4.01%, which saw its share price increase to €10.38.

By 12:00h, 2,650 shares in the company had been traded for a total price of €27,507.

The company, which yesterday became the sixth socimi to list on the market, debuted on the stock market after completing a €94.8 million capital increase, carried out by investors in the Wealth Management division of Deutsche Bank in Spain.

The company debuted on the market at a price of €9.98 per share, according to Spain’s Stock Exchanges and Markets body (‘Bolsas y Mercados Españoles’ or BME).

Trajano’s shares are traded through a price-setting system, which matches supply and demand through two daily auctions or “fixings” (at 12:00h and 16:00h).

The socimi has its eyes firmly set on office assets in “semi prime” locations in Madrid and Barcelona and “prime” locations in secondary cities. It is also looking at shopping centres and retail parks, as well as logistics assets in Madrid, Barcelona, Zaragoza, Valencia and the País Vasco.

The company expects to complete its investments within a maximum period of 24 months, although that timeframe may be reduced in light of the strong sentimient that currently exist in the real estate sector.

The company is managed by the team responsible for the real estate division of Deutsche Asset & Wealth Management in Spain and Portugal.

Currently, the entity manages real estate assets worth more than €46,000 million around the world, and €740 million in Spain and Portugal.

Deloitte acted as the Registered Advisor and BEKA Finance as the liquidity provider. (…).

Since last year, several companies have listed on the stock market under the socimi structure, including: Lar España Real Estate, Hispania, Merlin Properties, Axiare and Uro Property.

Original story: Expansión

Translation: Carmel Drake