Domo Activos Acquires Metro Office Building on Calle Cavanilles for €14.1 Million

30 July 2019 – Richard D. K. Turner

The socimi Domo Activos has acquired the Metro office building located on Calle de Cavanilles, 58, in Madrid’s  Retiro district, from a cooperative that had previously acquired the land where the building is located, for 14.1 million euros.

The office building has seven above-ground floors with 7,500 square meters of constructed surface area. The asset comes with a project to expand the current building, including more offices, commercial premises and parking.

Original Story: La Vanguardia

Domo Activos Approves a Capital Increase of €20M

18 March 2019 – Idealista

Domo Activos has approved a capital increase amounting to €20 million, according to a statement issued by the company in the Official Gazette of the Mercantile Registry (BORME).

The company will undertake the increase, which must be executed within a maximum period of one year, through the issue of up to 10 million shares at a price of €2.10.

The capital increase follows another approved by the company in September 2018 amounting to €5 million for the purchase of new land. The company owns buildable land in Madrid, Málaga, Sevilla, Valencia, Córdoba and Zaragoza.

The business model of Domo Activos involves the acquisition of land for the development of rental properties. After three years, those properties are then sold.

Original story: Idealista 

Translation/Summary: Carmel Drake

Domo Activos Completes €5M Capital Increase to Buy New Land

14 September 2018 – Eje Prime

Domo Activos is continuing to finance the expansion of its land portfolio. The property developer Socimi aimed at medium-sized investors has undertaken a capital increase amounting to €5 million, according to a statement filed with the Alternative Investment Market (MAB).

Domo Gestora’s Socimi, which made its debut on the stock market at the end of 2017, has subscribed 2.5 million shares, granting them a nominal value of €2 each. With these resources, the company will be able to continue paying for its land purchases on which to develop residential buildings for rent.

Domo Activos already approved a capital increase amounting to €15 million at an Extraordinary General Shareholders’ Meeting in December, though the issue and launch into circulation of up to a maximum of 7.5 million shares.

Since its creation in 2015, Domo Gestora’s property developer has been committed to acquiring buildable land in locations such as Madrid, Málaga, Valencia, Sevilla, Córdoba and Zaragoza. Currently, the largest project being promoted by Domo Activos is an 80-home development that it is building in Madrid, in the Ensanche de Vallecas.

Original story: Eje Prime

Translation: Carmel Drake

Domo Activos Embarks On New Growth Phase

3 November 2017 – Eje Prime

Domo Activos is embarking on a new phase of growth. The largest property developer Socimi, aimed at medium-sized investors, is going to launch a €15 million capital increase over the next few weeks. It plans to use the funds raised to buy new land in Spain, with the purpose of building new homes, according to José Luís Alba, Director of Domo Gestora’s Socimi.

According to the director, the company has already identified opportunities in Spain and is now waiting to beef up its financial strength so as to be able to actually purchase the new plots. “We will focus these acquisitions in Madrid, Málaga and Valencia in the first instance, but we are also looking for plots in Sevilla, Córdoba, Granada and Zaragoza”, said the executive.

Domo Activos Socimi will increase its share capital through an issue and placement into circulation of up to a maximum of 7.5 million shares, with a nominal value of €2 each “with an incomplete subscription forecast”. To approve this increase, Domo Activos has convened an Extraordinary General Shareholders’ Meeting, which will be held in Madrid on 30 November.

The business model of Domo Activos involves the acquisition of land for the construction of buildings, which are let out for the first three years and then sold “whereby benefitting from the tax benefits afforded to these types of companies”. “In this way, all of the capital gains generated, from the date the land is acquired to the date the properties are sold, are not taxable for corporation tax purposes”, explain sources at the group.

According to the company’s own estimates, the return on this project, once the divestments have been made, could reach 10% per annum. Investors receive the profits resulting from rental income in the form of dividends throughout the period that the buildings are leased and until they are sold.

Currently, the first project being promoted by Domo Activos is the development that it is constructing in Madrid, in El Ensanche de Vallecas. This building will contain eighty homes for rent, according to sources at the group.

New leadership team

Moreover, the company has also been reshaping its management team in recent months. To carry out this new phase of growth, Domo Gestora has appointed José Luís Alba as Director of the Socimi, a role carried out until now by Roberto Boluda, who moved to Prygesa in July as the Managing Director of the property developer owned by the Pryconsa group.

Domo Gestora’s Socimi was created by a team that is closely related to the real estate business. When it was launched, the company appointed Enrique Guerra as its CEO. Guerra is an expert in real estate management and has specialised in housing cooperatives since 2002 (…).

Domo’s management team is completed by executives such as Juan Pedro Plaza, the Socimi’s Director of Investments (…); Feliciano Conde, who took over the presidency of Domo Activos in January 2016 (…); and Alberto Freire, Director of Developments at Domo, amongst others.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Domo’s Socimi Debuted On The MAB On 21 September

22 September 2017 – Eje Prime

The countdown has started for the debut of Domo Activos, the socimi of the cooperative manager of the same name. The company will make its debut on Thursday 21 September on the Alternative Investment Market (MAB), where it will list at €2 per share, a price that represents a market valuation for the company of €7 million, according to the BME.

The company, which is the 41st to make its debut on this market under the Socimi framework, owns just one asset, a plot of land in Madrid, located in El Ensanche de Vallecas, which it purchased in March from Sareb for €6.55 million. The land has a maximum buildability of 9,348 m2 and the firm plans to build 80 homes on the site, plus six ground floor commercial premises and parking.

For the next two years, the firm will focus on developing this project, according to details contained in the information brochure that accompanies its stock market debut. It estimates that the homes will be ready to lease “from September 2019”.

Domo has a business plan that includes taking on new land purchases to develop real estate assets, with the aim of subsequently making cash from them by leasing them out “for at least three years”, and ultimately, selling them.

This strategy includes the development of homes, hotels and tourist apartments, primarily in the Community of Madrid, Cataluña, País Vasco, Málaga, Sevilla, Granada, Córdoba, the Community of Madrid, the Balearic Islands and the Canary Islands.

The Socimi chaired by Feliciano Conde Anguita (pictured above) plans to pay for this business plan through capital increases, in such a way that the firm will undertake operations of that kind, “to the extent that investment opportunities arise”. Current shareholders will have preferential subscription rights in future capital increases.

Original story: Eje Prime (Original article dated 19 September 2017)

Transltion: Carmel Drake

Domo Will Debut On The MAB In October

8 September 2017 – El Confidencial

The cooperative manager Domo now has everything in place for the debut of its Socimi on the stock market. The company led by Feliciano Conde has just submitted the incorporation document (known in the jargon of the industry as the DIM) and has received the corresponding ISIN code from Iberclear, as well as the green card necessary to be able to operate on the stock market.

With those procedures completed, the firm now just has to wait for the authorities of the Alternative Investment Market (MAB) to approve all the documentation for the Socimi to debut on the stock market. And provided there are no surprises, that procedure should happen between the end of this month and the beginning of next month. The property developer wants to ring the bell with an army of first-rate advisors, aware of the revolution that debuting on the stock market will have on its value proposition.

The Socimi has hired the law firm Pérez-Llorca as legal counsel; PwC as the auditor; CBRE as the real estate expert; and Armabex as the registered advisor and global coordinator of the whole incorporation process. Alongside all of them, the corporative manager has been working for almost two years to promote a new sub-segment within the Socimi framework, which has been included via the circular, and which allows it to also include the property development business.

To this end, these vehicles are granted more time to distribute dividends, rather than requiring that at least 80% of the assets in the portfolio are profitable from day 1 and the profits be distributed amongst the shareholders.

The major novelty of Domo Activos’ arrival on the stock market is the possibility of allowing investors in Socimis to also benefit from the property developers’ margins. In fact, the company’s road map forecasts that it will raise up to €250 million through capital increases over a period of two years, money that it will allocate to acquire buildable land on which to construct homes.

Investments amounting to €500 million

Once constructed, the homes will be rented out for a period of three years, to safeguard the tax benefits, and subsequently, they will be sold, with all the profits being shared out amongst the investors. Even before its debut on the MAB, Domo has already undertaken a €7 million capital increase, which it has used to acquire a plot of buildable land in Esanche de Vallecas (Madrid), where it started work last week to build 80 apartments.

These homes will be put up for rent from the summer of 2019, which will allow the Socimi to start distributing dividends that same year. This is the only asset with which the Socimi will make its debut on the stock market, although it will quickly start to execute its growth plans, with a capital increase planned for October, through which it hopes to raise between €20 million and €50 million to acquire plots of land that it has already identified.

Focused in Madrid, but also interested in buildable plots in Málaga and Palma de Mallorca, Domo Activos will be a genuine collective investment vehicle, given that from the start it will have 54 investors and none of them will hold a majority stake. The largest shareholder will be Domo, with a 5% stake. With the €250 million that the entity plans to raise, it should be able to undertake operations amounting to €500 million, given that its objective is to maintain a leverage level of 50% and to offer annual returns of 10%.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake