Spain’s First Student Hall Socimi Prepares Its MAB Debut

13 September 2017 – El Confidencial

Student Properties Spain Socimi will be the first listed real estate investment company specialising in student halls of residence to debut on the stock market. And it will do so with an asset that could mark a before and after in this market in the Spanish capital.

It acquired the building at the end of 2016 from the insurance company Mapfre for €13 million. The property is located on Calle Don Ramón de la Cruz, in the heart of the Salamanca neighbourhood, just opposite Nuestra Señora del Pilar school, 200m from the Deusto Business School (the Universidad de Deusto’s business and economics school) and 500m from the IE Business School.

With a total surface area of 5,420 m2, spread over eight floors, of which 3,500 m2 are above ground, the asset used to house one of Mapfre’s private clinics. But its new owner is committed to converting it into a hall of residence for wealthy students. In fact, the property is currently being renovated by the construction company Vialterra Infraestructuras, which was awarded the building contract, with a budget of around €3 million (…) plus indirect costs of €1 million (…).

With those figures on the table, all indications are that the building will end up housing a luxury hall of residence for students, in line with The Lofttown project in Barcelona. The price of rooms is likely to reach €1,800/month. Having said that, all kinds of services will be included: an outdoor gym, a solarium, a co-working room, a private kitchen, weekly cleaning, use of a 3D printer, laundry, a Play Station, a chill-out terrace and a parking area for bikes, amongst other services.

“Projects such as The Lofttown in Barcelona are hard to replicate in many cities in Spain, and above all, they are hard to scale up. That does not mean that they cannot be attractive and even very profitable real estate investments than more standard products, but it does mean that they always have to be marketed and managed by very specialist teams. Moreover, institutional capital will always consider them to be niche products”, says Patricio Palomar, Senior Investment Consultant at AIRE Partners.

Name change and upcoming stock market debut

Don Ramón de la Cruz 37 was acquired by Collie Investment, a joint-stock company that was subsequently transformed into a Socimi. A week ago, that entity changed its corporate name to Student Properties Spain Socimi (…).

The managers behind the company are Altamar Capital Partners, whose President and founding partner is Claudio Aguirre (Goldman Sachs España), Amira Real Estate Asset Management and Orienta Capital, which is chaired by Emilio Soroa, former Director at Seguros Bilbao.

Indeed, one of the directors of Altamar, Miguel Zurita, joined the Socimi just two weeks ago to replace Fabrizio Agrimi, CEO of the firm until 28 August (…).

“In markets such as the USA, Australia, the United Kingdom, the Netherlands and Germany, student halls have gone from being considered as alternative real estate assets to being products that have as much demand and liquidity as hotels and logistics platforms. To the extent that our market converges towards that trend and becomes more mature, we are going to see products of a different quality appearing, designed for a different type of consumer, in the same way that three-star hotels exist in cities alongside super-luxury hotels”, says Palomar (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Axiare Buys Building In Madrid From Telefónica For €33M

14 October 2015 – Expansión

The Socimi Axiare Patrimonio has completed the purchase of a new office building. The Socimi has acquired the property located at number 84 on Calle Don Ramón de la Cruz, in the central business district of Madrid, from Telefónica.

The building, which has a surface area of 9,271 m2, is currently vacant, having housed various divisions of the Spanish telecommunications operator in recent years. As such, Axiare will have to look for a new tenant.

Axiare has paid €32.75 million for the property, which it will add to its growing portfolio of investments, amounting to more than €800 million since it first went public in July 2014.

The company invested the €360 million it raised from investors through its debut on the stock exchange in less than one year. And in June 2015, it closed a capital increase amounting to €395 million to finance the continuation of its purchases. Currently, its portfolio comprises 28 properties, with a combined surface area of more than 550,000 m2, of which the vast majority (73%) are office buildings, although it also owns logistics platforms and commercial assets.

Axiare, which made profits of €31.3 million during H1 2015, closed trading yesterday up 2.01%, taking its share price to €12.20. The company’s market capitalisation amounts to €876.9 million, having increased by 17.48% in one year.

The sale of the building by Telefónica forms part of the property divestment process that the operator is conducting for its non-strategic assets. Recent sales include two completed this summer involving properties in Madrid – one in the same street – Calle Don Ramón de la Cruz and the other in Plaza Santo Domingo, for €42 million.

In September, Telefónica also auctioned off five other buildings located in Madrid, Barcelona, Sevilla and Valencia. The group will continue to occupy all of the properties sold recently, with the exception of the latest one.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Telefónica Sells 2 Buildings In Madrid For €42M

18 August 2015 – Expansión

According to company sources, Telefónica has sold one property located in the central Madrilenian square of Santo Domingo and another on Calle Don Ramón de la Cruz, in the Salamanca neighbourhood, also in Madrid.

The divestment comes after the company completed the auction of five buildings last year as ‘Sale & Leaseback’ transactions. It is continuing to occupy those properties as the tenant for 7 years from the date the deeds were signed.

According to the company’s accounts, Telefónica España generated Operating Income before Depreciation and Amortisation (OBIDA) of €19 million during the first six months of 2015 from the extraordinary sale of buildings.

According to ‘El Confidencial’, which has disclosed this latest information, the company recorded revenues of around €42 million from the sale of the two aforementioned properties.

Similarly, the newspaper has reported that Telefónica will continue to occupy the first building as the tenant for a period of seven years. Once that contract term is up, the new owner may turn the property into homes.

Original story: Expansión

Translation: Carmel Drake