Inbest Debuts on MAB Valued at €83 Million

10 July 2019 – Richard D. K. Turner

Inbest, a socimi which focuses its investments on major retail store locations, debuted on Spain’s alternative stock market (MAB) valued at 83 million euros. The socimi owns three El Corte Inglés commercial premises and the commercial gallery at Madrid’s Edificio España.

The company, which was founded by Corpfin Capital and currently chaired by Javier Basagoiti, is structured in four investment vehicles that have a total investment capacity of 278 million euros.

Original Story: Eje Prime

 

Inbest to Debut on MAB on July 9

5 July 2019 – Richard D. K. Turner

Inbest Prime Inmuebles, the socimi which owns commercial premises leased to El Corte Inglés and the retail gallery in the Madrid’s Edificio España, will debut on Spain’s Alternative Stock Market (MAB) next Tuesday, valued at 83 million euros. The firm, which is controlled by Corpfin Capital, consists of a holding company which controls subsidiary socimis.

The first, Assets I, has a portfolio of four retail stores, all leased to El Corte Inglés, and an office building. The assets, which at valued at €189.6 million, are located in Madrid, Bilbao, Valencia and Las Palmas.

The second, Assets II, was recently created but already controls a 15,000-m2 retail gallery in the Edificio España in Madrid. Inbest agreed to pay 160 million euros for the asset in January.

Original Story: Europa Press

Photo: EFE / J.J. GUILLÉN

 

Inbest to Make its MAB Debut with a Prime Retail Portfolio

21 June 2019 – Expansión

The Spanish firm Corpfin Capital is finalising the stock market debut of its investment vehicle Inbest, which it created last year with the aim of investing around €400 million in prime retail assets.

Inbest has already starred in some of the most high profile operations in the sector, including the purchase of the commercial space in Edificio España for €160 million and the acquisition of 3 buildings located on Gran Vía 20, in Bilbao; Princesa 41, in Madrid; and Calle Colón in Valencia, for €184 million.

The firm’s MAB debut is scheduled to take place during the first half of July, most likely on 9 July, through four of the five Socimis that it has created with the assets acquired.

Original story: Expansión (by Rocío Ruiz)

Translation/Summary: Carmel Drake

El Corte Inglés Sells a Store in Valencia to Corpfin Real Estate

11 October 2018 – Expansión

The distribution group is finalising the sale to Inbest, a vehicle owned by Corpfin, of two premises, joined together to form a 7,000 m2 centre, on the Valencian street of Calle Colón.

El Corte Inglés is taking another step forward in its non-strategic asset divestment policy to reduce its debt. To this end, it is finalising the sale to Corpfin Real Estate of two premises converted into a single commercial space, located in Valencia, for more than €90 million, according to market sources speaking to Expansión.

The premises, both located on Calle Colón – one of the main commercial thoroughfares in Valencia – have a combined surface area of 7,000 m2.

It is the second operation that the two groups have signed in recent months, after they reached an agreement in the summer to sell two more retail premises on Gran Vía in Bilbao and Calle Princesa in Madrid, with a combined surface area of 8,800 m2, for €93 million. Like in those cases, this latest operation will be executed using the sale & leaseback formula, which means that El Corte Inglés will remain as the tenant following the sale, and the operation will not affect the business or its employees in any way.

This operation will allow El Corte Inglés to reduce its debt, which currently amounts to €3.65 billion, and to optimise its resources. The premises that have been sold in Valencia belonged at the time to a real estate portfolio that the group purchased from Marks & Spencer when the British firm left Spain. The stores are very well located but they are also some of the firm’s smallest premises in the city, where it has four large department stores on: Avenida de Francia, Pintor Sorolla-Colón, Ademuz and Nuevo Centro.

Meanwhile, the operation allows Corpfin Real Estate to continue growing Inbest’s asset portfolio. At the beginning of this year, the manager launched this vehicle comprising several Socimis, which it was thought may debut on the stock market possibly before the summer. This vehicle was created with the aim of investing €400 million, between capital and financing, before 2021, although, with this operation, it has now almost fulfilled that objective.

In addition to the premises acquired from El Corte Inglés, Inbest has reached an agreement to purchase the commercial area in Edificio España from RIU for around €160 million. Similarly, this summer, it purchased a store measuring 1,500 m2 on Calle Triana, in Las Palmas de Gran Canaria, from an Indian family.

Original story: Expansión (by R. Arroyo & V. Osorio)

Translation: Carmel Drake

El Corte Inglés Values its Real Estate Assets at €17.1bn

25 September 2018 – Expansión

The properties owned by El Corte Inglés are worth €17.147 billion, according to the most recent valuation entrusted by the company to Tinsa for the end of its financial year, February 2018. That is the valuation that the company shared with investors interested in the placement of €600 million of its bonds.

This real estate portfolio, which according to previous reports was worth almost €17.0 billion, comprises 94 shopping centres, of which two are located in Portugal. These shopping centres account for 87% of the total value of the company’s assets. El Corte Inglés warns investors that this valuation may have to be adjusted in the future, given the illiquid nature of its real estate assets.

Tinsa’s study segments the distribution company’s shopping centres by value. Two of them are worth more than €500 million each, and another two are worth between €400 million and €500 million. The bulk of the centres, 45 to be precise, have a valuation of between €100 million and €200 million. Six of the centres are worth between €300 million and €400 million.

32% of the value of the real estate assets of El Corte Inglés are located in Madrid, whilst 10% are located in Barcelona. Málaga and Valencia are home to 6% each; Sevilla another 4%; and the other Spanish regions, the remaining 42%.

The bulk of the valuation of El Corte Inglés’s real estate portfolio, €14.964 million, corresponds to its stores and shopping centres

The company highlights that it owns the largest portfolio of real estate assets of any of the companies in its sector in Europe. The total surface area of its real estate assets spans 3,994 million m2.

This independent valuation entrusted to Tinsa does not include the real estate operations carried out by El Corte Inglés since February of this year. In August, the company sold two shopping centres located in Madrid (Princesa) and Bilbao (Gran Vía) to Corpfin Capital Real Estate for around €100 million.

Quarterly results

The results of El Corte Inglés remained practically stable YoY during the first quarter of its financial year, which finished at the end of May. According to the unaudited provisional accounts, the company lost €50 million during that quarter, compared with losses of €51 million during the same period in 2017.

The company’s sales grew slightly, with net revenues of €3.417 billion, just above the €3.413 billion recorded during its first quarter last year.

According to the unaudited provisional data at the end of July 2018, corresponding to the first five months of the financial year, sales fell by 0.1% YoY and EBITDA decreased by 0.6%.

This result is explained by a decrease in revenues in the retail and technological departments, which were partially offset by an increase in sales in its travel agency and insurance departments.

El Corte Inglés explains to investors interested in its bonds that sales of clothing were hit during that period due the unusual climate this year (…).

Original story: Expansión (by A. Roa & D. Badia)

Translation: Carmel Drake

Corpfin Launches a Socimi to Invest €400M in High Street Assets

5 April 2018 – Expansión

The real estate manager Corpfin Capital Real Estate is accelerating its commitment to retail with the launch of a new Socimi through which it plans to invest €400 million in high street assets (retail premises at street level) between now and 2021. €200 million of that amount will proceed from own funds raised and the remaining from gearing.

The President and Founding Partner of Corpfin Capital Real Estate, Javier Basagoiti (pictured above), said that the fundraising process began in February and is expected to conclude in December or whenever the €200 million threshold is reached. In terms of investment timeframes, the manager calculates that the process will finalise in 2021 or whenever the target investment volume of €400 million has been reached.

In terms of the structure, this vehicle will comprise a Socimi from which four other Socimis will depend, in turn, which will be listed on the stock market, a formula known in the jargon as the “inverted comb”. The estimated date for the stock market debut of the four Socimis is September 2019.

Basagoiti explained that the objective is to acquire high street assets with a surface area of between 1,000 m2 and 2,000 m2, which involve, in many cases, the purchase of entire buildings that will require managing and will include mixed uses – residential, offices and hotels -. In any case, the value of the retail element of the asset must always exceed 60% of the total.

Corpfin is holding advanced negotiations to buy assets in País Vasco, Madrid and Valencia at prices ranging between €5 million and €52 million.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Armabex: The Avalanche Of Socimis Continues

17 October 2016 – El Economista

There are 29 listed Socimis on the Spanish stock market, of which 24 are listed on the Alternative Investment Market (MAB). And there are lots more on their way. All of them are subject to the following basic conditions: they must have a minimum share capital of €5 million, distribute 80% of their profits as dividends and hold each rental property in their portfolios for at least three years. But, other than that, they are all completely different.

Socimis, which is the acronym for collective listed real estate investment companies, have come to replace the former real estate companies, which are now just shadows of their former selves (firms such as Quabit and Inmobiliaria Colonial) in a country where investing in property is the typical thing to do. “For every one million euros invested or saved in financial assets, another €25 million is invested in property in Spain”, according to Antonio Fernández, Chairman at Armabex.

Arrival of foreign capital

A few years ago, the Socimis found the perfect breeding ground for construction in Spain. Following the real estate boom, which did away with much of the sector and the subsequent burst of the price bubble, overseas investors decided that it was time to return to Spain. From there, the large Socimis were born in our market, such as Merlin Properties, Hispania, Lar España and Axiare, which all have significant overseas shareholders.

Fernández called these companies the Alpha Socimis – they are used by overseas investors to enter the Spanish real estate market because “by buying shares in them, they are, in turn, acquiring major buildings in the country’s largest cities”. By contrast, the Beta Socimis are those that focus on the development of their assets and, therefore, they make investments (capex).

According to the latest data from Eurostat, house prices in Spain rose by 3.8% YoY during the second quarter of 2016, i.e. by almost one percentage point more than the 2.9% increase registered across the Eurozone as a whole. As such, the increase in house prices has now been higher in Spain than across the EU (on average) for seven months in a row.

The different types of Socimis

(…).

– On the one hand, we have the large Socimis in the market. If an investor is looking for real estate vehicles, such as Merlin Properties, he should know that he is mainly investing in high quality homes and premises that will generate regular rental income. In addition, they are monitored by at least ten brokerage houses, such as in the case of Lar España. According to Bloomberg, these two companies, along with Axiare and Merlin, i.e. the four large players in the Spanish market, all have “buy” recommendations.

– On the other hand, we have the mainly family-run Socimis, where “there may be just a single person taking the decisions”, said Fernández, “and that involves risk”, even more so when they are dealing with single assets that could be sold at any time. Five Socimis have been constituted on that basis, with just one property. (…). A fair few others own between three and five properties only.

– There are also Socimis that own land. “It is worth noting that their returns are higher because they involve greater risk”. According to the expert, these firms rent land and invest in it, which means that, in many cases, the company does not generate any profits and therefore it does not distribute dividends to its shareholders. (…).

– And there are also Socimis that more closely resemble funds of funds, in other words, Socimis that invest in other Socimis, but that do not possess their own assets. Corpfin Capital holds four Socimis under its structure; and Optimum Re Spain Socimi manages several real estate funds.

Original story: El Economista (by Laura de la Quintana)

Translation: Carmel Drake

ID Logistics Buys Logiters From Corpfin Capital For €85M

28 June 2016 – Expansión

The multinational logistics space management company ID Logistics has purchased Logiters, manager of logistics surface areas and owner of warehouses in Spain and Portugal. The company, which was owned by the private equity fund Corpfin Capital, has been valued at €85 million.

Logiters manages 50 logistics warehouses, with capacity of more than 750,000 sqm, spread across different locations in Spain and Portugal. In 2015, it recorded revenues of €250 million and closed the year with a workforce of 3,300 employees.

The aim of ID Logistics is to strengthen its presence in these two markets, as well as to grow in the sectors in which Logiters is very specialised, such as pharmaceutical and automotive logistics.

Following this acquisition, ID Logistics also strengthens its position in Europe, which accounts for 82% of its business. The operation is subject to approval by Spain’s National Commission for Markets and Competition.

The buyer

ID Logistics owns more than 200 platforms across fourteen countries, representing a combined warehouse surface area of more than 4.3 million sqm in Europe, Latin America, Africa and Asia. The company employs 15,000 people in total.

Meanwhile, Corpfin Capital is an independent private equity firm that focuses on the local and international expansion of Spanish SMEs. It took control of Logiters two years ago.

According to Álvaro Olivares, Partner at Corpfin Capital, “over the last two years, we have accompanied Logiters through a major recovery process”. And he added that now, “under the management of ID Logistics, the company will be capable of realising its full growth potential”.

Original story: Expansión (by M. A.)

Translation: Carmel Drake

Corpfin Capital Lists 2nd Investment Vehicle On MAB

28 January 2016 – Expansión

After debuting its first Socimi on the Alternative Investment Market (MAB) last September, Corpfin Capital is trying its luck on the Madrid stock exchange once again, just four months later, in the form of its second listed investment vehicle, Corpfin Capital Prime Retail III, which starred yesterday in the first ring of the bell in 2016.

The real estate arm of Corpfin Capital, which has so far launched four investment vehicles, is intending to create a fifth entity this year with a view to entering new businesses and expanding the mix of assets to include the residential, hotel, office and retail segments. “We are exploring other types of investments, but through another vehicle”, explained Javier Basagoiti, Managing Partner of Corpfin Capital Real Estate and President of the new Socimi.

Specifically, the two Socimis have a joint investment capacity of €110 million for 2016 and they have already spent €76 million. “The remaining €30 million has already been allocated to the purchase of assets, mostly in Madrid”, says Basagoiti, who rules out a capital increase for the time being.

The Director explained that he expects (the vehicle) to provide investors with an annual return of more than 15%, compared with the current yield of 7%.

Despite the sudden rise of the Socimis – Corpfin Capital Prime Retail III is the twelfth company of its kind to list on the MAB –, Basagoiti denies that a Socimi bubble is emerging, instead he regards the vehicles as investment “opportunities”. “A bubble would be created if the investment policy was no good and it was playing on the change in the (economic) cycle with risky investments”, he said. 90% of the company’s investors are domestic and 10% are from the United Arab Emirates. “We focus on small-time savers and private banking clients”, he says.

The real estate area is one of Corpfin Capital’s core business areas; its primary activity is the management of private equity funds.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Corpfin Launches A Socimi That Will Invest €100M

22 April 2015 – Expansión

New Socimi / The real estate division of the Spanish fund manager has obtained €50 million from individual investors, including one from Abu Dhabi.

A new Socimi is preparing for its stock market debut. Its name is Corpfin Capital Prime Retail Assets, a vehicle created by the real estate division of the Spanish fund manager Corpfin Capital. “Since we created a specialist fund manager for the real estate sector in September 2008, our goal has been to create a vehicle and we think that a Socimi is the perfect formula for our investors”, says Javier Basagoiti, Managing Partner at Corpfin Capital Real Estate.

The new company will, in turn, channel the investments of two other Socimis: Corpfin Capital Prime Retail II (CCPR II) and Corpfin Capital Prime Retail III (CCPR III). The first company was created in September 2013 with capital of €30 million, and CCPR III was launched in 2013 with €20 million from small investors. “We have signed a co-inversion agreement, which gives us greater purchasing power”, says Basagoiti. The €50 million obtained (to date) will be supplemented with bank financing, which has already been committed, to take the total (funds available) to €100 million. “We are not listing to obtain financing, we already have funds. But we want to ensure that our vehicle has the greatest transparency possible”.

Listing on MAB

The new Socimi will make its stock exchange debut on MAB and will be dedicated exclusively to the management of commercial property. “We will not invest more than 15% or 20% of the total in a single asset. We prefer to diversify”.

For its IPO, which is scheduled for May, the fund already has assets worth more than €50 million. “We have already invested 56% of the funds. The objective is to invest 100% before August 2016, but I think we may have completed our purchases before Christmas”. All of the assets are retail premises located on the major streets of large capital cities, such as San Sebastian. In Madrid, they own properties on streets such as Serrano (where they own number 4, which they lease to the firm Hasteens), Fuencarral (where they have numbers 37 and 74), Goya and Velázquez. “The objective is to obtain an annual return of 15%. We are a firm that adds value; we do not buy properties that are already being rented out for a return of 6%, rather we focus on off-market transactions and we (actively) manage our assets”.

Unlike the Socimis that are already listed (on the stock exchange), the share capital of Corpfin Capital Prime Retail Assets will not be owned by large international funds or a single high profile shareholder, but instead by hundreds of smaller investors. “We are not going to have an “anchor” investor. We are a boutique Socimi, which is what our investors prefer”, explains Basagoiti. The contributions to the new Socimi range between €250,000 and €500,000 from small savers and between €1.5 million and €5 million from family offices. “90% of our investors are Spanish but we also have foreigners, for example, one investor from Abu Dhabi, who is contributing just over €6 million”. Moreover, the team at Corpfin Real Estate will also participate in the share capital. “The fund manager will acquire between 2% and ·3% of the Socimi’s capital, as a means of clearly demonstrating our commitment”.

Socimis for the acquisition retail premises is not Corpfin’s only plan. “The idea is to create more specialised listed companies. I think that prime areas in the residential sector are attractive, as are medium-sized retail spaces and offices, but not entire buildings, rather mix-used properties for SMEs.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake