Socimi VBare Enters Málaga, Expands in Madrid & Increases its Share Capital by €3.2M

13 June 2018 – Eje Prime

VBare is embarking on a new phase and is branching out beyond Madrid. The Socimi is finalising the purchase of its first assets outside of the Spanish capital, in Málaga, and is continuing to expand its portfolio in Madrid, according to explanations provided by Fabrizio Agrimi, Director General of VBare, speaking to Eje Prime. Moreover, last week, the group closed a capital increase through which it raised €3.2 million to finance new purchases.

The Socimi, which ended the first quarter of the year with 210 assets under management, has set itself the objective of expanding its portfolio to include 261 residential units under management. To this end, the company is on the verge of signing the purchase of two assets, one in Málaga, which will be VBare’s first venture outside of Madrid, and the other in the Spanish capital.

“We hope that the asset in Málaga will be incorporated into our portfolio before the end of June”, says Agrimi. The asset is situated “in a central location” and comprises fourteen residential units. VBare is going to pay around €1.5 million for the asset, including the cost of the renovation that it will undertake before putting it on the market.

The second property is located in the centre of Madrid, and although sources at the Socimi are not able to provide many details about that acquisition, they say that it will comprise around 35 units located “in the city centre”. Currently, 91% of VBare’s portfolio is occupied and “if it weren’t for the renovation projects underway, the occupancy rate would be 95%”, according to the director.

In order to undertake all of these purchases, VBare recently completed a capital increase that could have amounted to €14 million, as disclosed by Eje Prime, but which ended up raising €3.2 million, with the sale of 240,457 new shares.

“It will not be long before we carry out another capital increase given that, due to the timings, several shareholders, possible investors close to the Socimi and other new players missed out on the opportunity to contribute capital this time around”, explains Agrimi (…).

With that capital increase now completed, VBare is going to study the acquisition of “whole buildings, portfolios of dispersed assets and portfolios of assets in single complexes, with the aim of maintaining a balanced portfolio to avoid concentration risks, and obtaining a competitive advantage over the other players in the market consistent with the identification of opportunities with little competition and at below market prices”.

Moreover, the company’s route map includes acquiring assets with a net direct yield of “no less than 4%, as well as properties for which we can obtain an acquisition price with an average discount on the market value of no less than 10%”.

In March, the company acquired a package of assets comprising twelve homes and a commercial premise at number 5 Calle Concordia in the Madrilenian town of Móstoles, according to a statement filed by with group with the Alternative Investment Market (MAB).

Of the twelve homes that it acquired from the Eureka business group, five have tenants and the others are “in optimal conditions for their immediate rental”. The net yield of these assets is estimated to amount to 5.9% once they reach fully occupancy.

VBare is a real estate investment vehicle specialising in the acquisition and management of residential assets for rent. The company was constituted in March 2015 with the aim of generating high returns for its shareholders through the implementation of a value-added strategy and to take advantage of opportunities in the Spanish residential market, which is showing clear signs of recovery.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Málaga Vies to Compete with Madrid & Barcelona in the Office Sector

11 April 2018 – La Opinión de Málaga

The yields for investors (in Málaga) range between 5% and 7.5%, and exceed these reference areas, although the experts agree that more tertiary development is needed. The real estate sector highlights the recovery of its activity and rules out signs of a bubble in the housing sector.

The real estate market in Málaga is on the rise and is in the spotlight of all investors both in the residential sphere as well as in the tertiary and office segments, according to comments made by several experts yesterday at a forum organised by Málaga’s Association of Construction Companies and Property Developers (ACP). They also ruled out that that there is currently a risk of a bubble since the rate of growth is being sustained. In the office sector and from the point of view of investors, Málaga capital, specifically, is positioning itself as a great alternative to the saturated markets of Madrid and Barcelona, which are showing signs of “depletion” with the lowest yields for 20 years (3.2% in the prime areas and 6.25% in the more peripheral districts), according to explanations provided by the Director of Investments at Savills Aguirre Newman, Pablo Méndez. By contrast, yields in Málaga range between 5% and 7.5%, with potential for returns that exceed by 1.5 points the markets that have traditionally monopolised investors’ interest.

“The office market has to look for new destinations to house its money and, after Madrid and Barcelona, Málaga is in an enviable position. We need to take advantage of that. There is office demand that is not being met in Málaga, which means that a great investment opportunity is opening up”, said Méndez. A recent study by his consultancy firm revealed that Málaga capital, with an office stock spanning 600,000 m2, has reached leasing and occupancy levels not seen since before the crisis, with percentages of 90% in the prime areas, the financial district and the area around Vialia, established as the Business Centre.

Rents amount to €12/m2/month on average, with maximum values of €18/m2/month for buildings on the most sought-after streets. This trend will continue in 2018, with the forecast that rental transactions could reach record volumes, boosted by sectors such as real estate, services and technology, which means that properties that have been available for almost a decade may have new tenants.

In light of this scenario of a “shortage” of sites, Méndez warns that the city needs new tertiary developments and office buildings given that the spaces that currently have most availability, on the Andalucía Technology Park (PTA), do not meet the expectations of companies who prefer a more urban environment for their workers. Areas such as Martiricos and La Térmica, in his opinion, represent development enclaves that could be used to alleviate this situation.

“Right now, the decisions as to whether to change headquarters are taken by considering the human resources team, the communications, the flexibility of hours, the services in the vicinity. There has been a substantial change in terms of the demand from tenants. The way of working has changed. Companies want to be more central and in their own environments”, he said (…).

Original story: La Opinión de Málaga (by José Vicente Rodríguez)

Translation: Carmel Drake

Excem Capital Launches New Rental Home Socimi

20 February 2017 – El Economista

Excem Group has opened itself up to the real estate investment business targeting young people and has launched a new Socimi “Excem Capital Partners Sociedad de Inversión Residencial”, wich will debut on the stock market in September 2018. The aim of this new entity is to “professionalise” the “growing” demand for rental homes from students and young professionals.

In a statement, Excem Group said that its “Excem Real Estate” division was created with the aim of becoming a key player in the management of real estate investments aimed at young people. In addition, Excem will co-invest in one of the projects.

“Socimi Excem Inversión Residencial” began its activity with an investment capacity of €12 million and is currently undertaking a capital increase, through which it hopes to raise additional investment capacity of €35 million by April.

In addition, it plans to expand its presence to Madrid, Barcelona, Bilbao, Santiago de Compostela, Salamanca, Valencia, Sevilla, Málaga, Córdoba and Granada.

The new Socimi will invest in homes for students and young professionals, as well as hostels and similar properties, to meet leisure demand, and co-working spaces so that young people can undertake their employment activities in collaborative environments.

Specifically, regarding the management of homes for students and young professionals, Excem has said that its objectives include managing professional leases, which is what students and young professionals from all over the world demand when they arrive in Spain.

In this context, the CEO of the Socimi, Antonio Mochón, said that there are increasingly more young people looking to set up home in Spain’s major cities. They are looking for work and some are even developing business projects that they created during their masters or degrees, and these people need “well-managed, high quality accommodation in central areas”.

Regarding the “hostels”, the firm wants to create a network of hostels and tourist apartments for travellers from all over the world with the aim of having more than 3,000 beds in the domestic market and with a view to “globalising rapidly”.

“The scarcity of professionalised supply at the global level makes this a large investment product with strong, safe projections, given the central locations in each city…and the high returns generated by the business”, said Excem.

Original story: El Economista

Translation: Carmel Drake

Deutsche Will Invest €200M In 2015 Through Its RE Fund

1 June 2015 – Expansión

Following the arrival of the first investors, which had a more opportunistic profile, the Spanish real estate market is now starting to show the first signs of stability, with the arrival of more conservative investors. That is the case of the German institutional funds, which manage the savings of wealthy investors and insurance companies in the European country.

These German funds include Ara (Alternative and Real Assets), which is the real estate division of Deutsche Bank. “There is a clear commitment to the recovery of the Spanish real estate sector. In 2014, investment in the non-residential sector amounted to €8,000 million, but we should remember that at the peak of the boom, that volume amounted to €11,000 million. We believe that there are still a lot of good products that have not yet come onto the market”, explains Carlos Manzano, head of Real Estate España at Deutsche Asset & Wealth Management.

For this year, Ara has set a target of investing around €200 million in property in Spain. “We have the capacity to invest twice as much as we (currently) hold (in the portfolio)”, he says.

Change of course

The former Reef has focused its activity in recent years on managing its portfolio, which has included a few divestments. “Pre-2006, we made a lot of investments but then we stopped investing due to the crisis and focused on managing. Now the market has changed and we believe that there is still a lot of good property that has yet to come onto the market”, he explains.

One of their recent major transactions included the purchase of a batch of 1,350 branches from BBVA in the summer of 2009. Those properties, managed by Magic Real Estate, ended up in the hands of the Socimi Merlin Properties. “We decided to sell BBVA’s branches even though there was a business plan (for them) until 2018. But we wanted to take advantage of the opportunity in the market and in the end we obtained a better return than we initially expected. In December, we also sold an office building in Las Rozas (purchased in 2011). But we do not want to be sellers in the Spanish market, but rather buyers. We have now divested everything that we wanted to”.

Currently, Ara is on the look out for good assets. “There are lots of German funds and private clients that are expressing their interest and their preferences have not changed. They are looking for good assets in central locations. It is a product profile that is hard to find”.

Its targets include offices, commercial assets and logistics warehouses; these products are “very much in vogue”, according to the head of the German fund.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake