Elaia to Sell Seven Tourist Apartment Complexes in Spain

25 June 2019

Looking to rotate its asset holdings, the socimi Elaia announced that it is looking to sell a portfolio of seven tourist apartment complexes in the Balearic Islands, Catalonia and the Costa del Sol. The French company Pierre & Vacances is currently leasing all seven.

The portfolio consists of a 150-flat complex in Sant Lluís, Menorca, two assets in Mallorca, two on the Costa del Sol, one in L’Estartit, Girona, and one in Barcelona.

The firm is looking to attract small and medium investors that would be interested returns of between 4% and 5% per year.

Original Story: EjePrime

Elaia Revises its Forecasts for 2018: Profits to Fall By 66%

8 February 2019

The company stated that an excess of payments arising from the non-divestment of assets was among the reasons for the fall in its bottom line.

Elaia will fall short of its forecasts. The company wrapped up 2018 with a profit of 1.6 million euros, 66% less than its initial estimates of €4.7 million. The company had receipts of 7.7 million euros, 10% less than expected.

The socimi, which belongs to the Luxembourg group Batipart, said in a press release that operating expenses had increased, mainly through unplanned for expenses in its main business lines, the use of external consultants and specific legal studies it had requested.

On the other hand, the Madrid-based socimi indicated that its expenses had increased due to unplanned for expenses due to the unanticipated non-divestment of assets.

Elaia also noted that it had sold fewer units than planned, reducing its total sales by 1.7 million euros, due to a change in the management company’s strategy.

Original Story: EjePrime

Translation: Richard Turner

Socimi Elaia Buys a Hotel in Mallorca for €5.7M

23 April 2018 – Eje Prime

Elaia Investment Spain is growing through purchases. The Socimi has acquired a hotel in Mallorca for a total value of €5.7 million, according to a statement filed by the group with the Alternative Investment Market. The asset acquired is Hotel Valparaiso, an establishment spanning 2,400 m2 on a plot measuring 4,400 m2, located on the seafront in Cala Murada, Manacor (Mallorca).

This represents Elaia Investment Spain’s sixth asset in the Balearic Islands. The hotel is located on the east of the island, on a cliff top, 17km from the underground lake in the Drach Caves and 3.5 nautical miles from Portocolom.

Elaia is a Socimi focusing primarily on the tourist accommodation sector (87% of its assets), whilst the rest of its portfolio comprises residential assets. Following this acquisition, the Socimi now owns 15 assets in total: two residential buildings in Madrid, seven tourist apartment complexes, five hotels and one project under development.

Batipart is currently the majority shareholder of Elaia, in which it holds a 66% stake. The other shares are distributed between 22 shareholders including Euler Hermès Reinsurance (13.81%), Allianz Invest Pierre (9.21%), managed by Immovalor Gestion, and other individual and corporate shareholders with minority stakes.

Original story: Eje Prime

Translation: Carmel Drake

Elaia Buys a Hotel Complex in Menorca for €17.5 Million

26 March 2018

Elaia, a socimi 66%-owned by Batipart, mainly specialises in tourist accommodations, a sector that accounts for 86% of its portfolio of assets.

Elaia Investment Spain is fattening its asset portfolio through new acquisitions. The socimi reported today that it had bought a hotel complex in Menorca for 17.5 million euros. The socimi advised the Market Alternative Stock Market (MAB) that asset will be operated by Pierre & Vacances.

The complex, called Edén Binibeca, has an area of 9,005 square meters, is located on San Luis’ (Menorca) waterfront. The property has 150 apartments, three swimming pools and a restaurant, among other areas.

It is Elaia’s first asset in Menorca and its fifth in the Balearic Islands, according to the same source, which has pointed out that the self-financed operation includes the signing of a long-term lease with Pierre & Vacances, which already runs eight of the socimi’s assets.

Elaia, a socimi 66%-owned by Batipart, mainly specialises in tourist accommodations, a sector that accounts for 86% of its portfolio of assets, which is currently made up of two residential buildings in Madrid, six tourist apartment complexes and six hotels.

Original Story: EjePrime

Translation: Richard Turner

Socimi Elaia Buys Former Staff Residence from BBVA for Hotel Conversion

12 February 2018 – Idealista

Real estate investment companies are continuing to star in real estate operations in Spain. On this occasion, the protagonist has been one of the latest companies to have debuted on the stock market: Elaia Investment Spain.

That vehicle, controlled by the Ruggieri family, one of the most wealthy in France, started trading its shares in October with a market value of €120 million. It specialises in assets linked to tourism and holds residential buildings, tourist apartments and hotels in its portfolio.

And it is in that sector that the Socimi plans to continue investing. On 7 February, it reached an agreement with BBVA to purchase the entity’s former employee residence in the town of Alfaz del Pi, in the province of Alicante.

The operation has been signed for €8.7 million and allows the Socimi to add more assets to its portfolio. The property has 140 rooms and spans a constructed surface area of more than 12,000 m2, located on a plot measuring 30,000 m2.

In this way, the complex has a large garden area, swimming pool, solarium, parking, tennis and frontón court, as well as a Social Club measuring almost 350 m2. With these facilities and its good location already in the bag (the residence is located just 200 metres away from the Playa del Albir, one of the most touristy municipalities in the Costa Blanca), the aim of the Socimi is to convert the property into a hotel complex.

According to confirmation provided by the French-controlled company to the Alternative Investment Market (MAB), the Socimi is in the process of marketing the property for its lease and the refurbishment work is in the process of being prepared.

According to explanations given by Manuel Climent, Director of transactions at JLL Hotels & Hospitality Group, who has acted as the advisor to the selling bank, “this operation confirms the interest from international investors in Spain and more specifically in holiday destinations. In 2017, more than 62% of the total transacted volume in holiday locations involved operations whose buyers were international. We expect this trend to continue during 2018, taking into account the strong operating results in the market and the growth forecasts”.

Original story: Idealista

Translation: Carmel Drake

Elaia, Socimi Focusing on Hotels and Tourist Apartments, Debuts on Stock Exchange Valued at €119 Million

31 October 2017

The hotel and tourist apartment socimi Elaia will be listed on the Alternative Stock Market (MAB) this Thursday, November 2, at 10.55 euros per share, a price that values the company at 119.1 million euros.

The Coordination and Incorporation Committee of the Alternative Stock Market (MAB) has sent the Board of Directors a favourable evaluation report on compliance with the incorporation requirements of the company ELAIA INVESTMENT SPAIN SOCIMI; after all the submitted documentation was studied.

The company will trade under the code “YEIS”, and its contracting will be done through the “fixing” pricing system. Renta 4 Corporate is the Registered Advisor and Renta 4 Banco will act as a Liquidity Provider.

Previously called Eurosic, it has a portfolio composed of two residential buildings located in the centre of Madrid, as well as five tourist apartment buildings, in which it has Pierre & Vacances as its partner, and five hotels, all of them spread over Gerona, Málaga, Barcelona and Mallorca.

Controlled by the French group Batipart, it invested a total of 145 million euros in the assets. The company also includes Euler Hermès, with 13.8%, and Allianz Invest, with another 9.21%.

Currently, it is performing rehabilitation works on the two buildings in Madrid. Both are nineteenth-century buildings, located in the centre of the capital (Bailén and Atocha streets, respectively). The socimi will invest almost 15 million euros on the renovations, and the associated flats will be subsequently placed in the rental market.

With Elaia’s foray into the stock market, the firm is seeking to increase its capacity to attract resources within a strategy focused on the search for new opportunities for development and long-term cooperation with hotel operators.

Specifically, the socimi’s growth policy focuses on acquiring new assets in coastal areas “with a high potential for appreciation” through a strategy of “repositioning and comprehensive reform” of the assets.

At the end of last June, Elaia held a gross financial debt of 43.7 million euros, according to the information the firm provided to the MAB.

Original Story: Inmodiario

Translation: Richard Turner

MAB Approves Debut Of Hotel & Tourist Apartment Socimi Elaia

31 October 2017 – Eje Prime

The hotel and tourist apartment Socimi Elaia has received the green light from the Alternative Investment Market (MAB) to make its stock market debut. The company will make its debut with a market valuation of €119.1 million, equivalent to €10.55 per share.

The firm just received a favourable assessment report for its debut on this market, through which it is seeking to increases its capacity to capture resources and provide liquidity to its shares, as well as to comply with its legal requirements as a Socimi.

Elaia owns a real estate portfolio comprising two residential buildings in the centre of Madrid, as well as five tourist apartment buildings and five hotels, all of which are located in Gerona, Málaga, Barcelona and Mallorca. The Socimi has made a total investment in these assets of €145 million.

The company is currently embarking on the comprehensive renovation of its two buildings in Madrid. In both cases, the properties date back to the nineteenth centre and are located in the centre of the Spanish capital (on Calle Bailén and Calle Atocha, respectively). The Socimi will invest €9.6 million and €5.2 million, respectively, on the work to improve the two properties, which will subsequently be used as rental apartments.

Original story: Eje Prime

Translation: Carmel Drake

The Ruggieri Family Buys Eurosic’s Spanish Socimi

18 October 2017 – El Confidencial

One of the wealthiest families in France has set its sights on Spain’s tourism market. The Ruggieri family, owner of the Batipart Group, reached an agreement in August with the also French firm Eurosic to purchase the Socimi that that firm had created in Spain, and has now renamed the entity Elaia Investment Spain.

After taking over 66% of the vehicle, Batipart has put all of the wheels in motion to enable the company to make its debut on the stock market before the end of the year, just like its previous owner had planned.

In this new business venture, Ruggieri is accompanied by Euler Hermès, owner of 13.81% of the Socimi; Allianz Invest Pierra, owner of another 9.21%; and around twenty individual investors who own the remainder of the share capital.

Elaia owns twelve real estate assets in Spain, primarily hotels and tourist apartments, although it also owns two residential properties in Madrid, on the centric streets Bailén and Atocha.

The Socimi focuses on three-and four-star category hotels and on taking advantage of the boom in tourist apartments. It owns two assets of each type in Mallorca and a hotel and two apartment blocks in Málaga, whilst, in Cataluña, it owns a hotel in Roses (Gerona), one tourist rental building in Barcelona and another in Estartir (Gerona).

In total, the Socimi has invested €145 million so far acquiring its portfolio, although its objective is to reach €280 million. To that end, it is currently holding talks with various investors, whose contributions will range between €10 million and €30 million.

When it debuts on the MAB, Elaia expects to have a market capitalisation of €120 million, a figure that will make it one of the largest Socimis on the market. The company will be managed by Elaia Management Spain, a subsidiary of Batipart, and the plan is to undertake some of its expansion together with Pierre & Vacances, its main partner in Spain.

The Socimi’s roadmap foresees it continuing with its intense asset acquisition policy for the next year or so, before spending the following two years repositioning those assets. The divestment phase is expected to be activated from 2021 onwards and that strategy is expected to be carried out on an asset by asset basis, culminating in 2024, with a forecast rate of return (IRR) of 15%.

Eurosic-Gecina’s heritage

The Batipart Group was founded in 1988 by Charles Ruggieri, who was born in Italy but who settled in France many years ago, where he is one of the top 100 wealthiest people in the country, with a net worth of around €900 million. A historical shareholder of Eurosic, in June, he agreed to sell his 24% in the real estate company to Gecina, in exchange for taking ownership of all of the leisure, health and hotel assets in the portfolio, including Elaia, worth €463 million in total.

That agreement was signed on 29 August, which is when Batipart took control of the Spanish Socimi. Moreover, the group owned by the Ruggieri family also has a presence in the nursing home sector, through the Korian Group, and it owns six hotels in Africa.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake