KKR, Altamar & Elix Inject €12M into their Socimi

16 March 2018 – Eje Prime

It’s non-stop for the Socimi owned by Altamar, the property developer Elix and KKR. After taking its first steps last year with the acquisition of its first assets, Elix Vintage Residencial has received a capital injection of €12 million to move ahead with the purchase of assets located in Barcelona and Madrid, as explained by company sources speaking to EjePrime. This new capital injection comes in the same year that the Socimi is planning to make its debut on the Alternative Investment Market (MAB).

According to the Official Gazette of the Mercantile Registry, the company has carried out a €12 million capital increase in its company Elix Vintage Residencial Socimi. As such, the subscribed capital of the company now amounts to €15 million. The first purchases that the company carried out were four residential assets, in Barcelona and Madrid, last year.

Currently, the company led and founded by the businessman Jaime Lacasa and Jorge Benjumeda, have 25 projects underway, which will result in the placing on the market of more than 300 homes. Of those projects, six are new builds and 19 are renovations.

Under the framework that Socimis are obliged to adhere to, the company plans to make its debut on the Alternative Investment Market (MAB) before the end of this year, whilst its mission in 2019 is going to be to start to trade on the main stock market. On the MAB, the company will start trading under the name Elix Vintage Residencial Socimi.

KKR and Altamar Capital Partners joined forces last July to invest in the Spanish market in the renovation and rental of homes. The two funds signed an agreement with one of the property developers that has most experience in this sector, Elix, to launch a Socimi that will invest more than €200 million in the purchase of properties in Barcelona and Madrid. The objective of both funds with the investment vehicle is to list it on the stock market once it has made the bulk of its investments.

This company, headquartered in Barcelona, was created with share capital of €100 million, most of which was contributed by KKR and a group of international and domestic investors including Altamar and Deutsche Finance Group. The rest of the shares are owned by Lacasa and Benjumeda

The Socimi’s plans involve purchasing around forty buildings over three years to subject them to a comprehensive renovation and put the homes on the rental market once renovated. That rental income will feed the Socimi, which plans to rotate the portfolio of assets that it builds every three years.

Elix will be the company responsible for transforming the properties, and so will act as the industrial partner. With this vehicle, the company is going to manage to scale its business model, which until now had been very concentrated in El Eixample, Barcelona. The company, founded in 2003, launched its activity in Madrid last year (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Elix Vintage Residencial Buys 4 Buildings for €3M

5 December 2017 – Eje Prime

The Socimi owned by Altamar, the property developer Elix and KKR has purchased its first assets. The company Elix Vintage Residencial has injected €3 million for the purchase of four buildings, located in Barcelona and Madrid, according to explanations given by sources at the company to Eje Prime.

According to the Official Gazette of the Mercantile Registry, the firm has carried out a capital increase amounting to €3 million in the company Elix Vintage Residencial Socimi. In this way, the company’s subscribed capital has increased to €3.06 million. According to the company, the first purchases that have been carried out involve four residential assets, in Barcelona and Madrid, although sources at Elix declined to give more details about the properties.

KKR and Altamar Capital Partners joined forces in July to invest in the Spanish market for the renovation and leasing of homes. The two funds signed an agreement with one of the property developers with the greatest amount of experience in the sector, Elix, to launch a Socimi that will invest more than €200 million in the purchase of properties in Barcelona and Madrid. The objective of both funds is to debut the investment vehicle on the stock market once it has carried out the bulk of its investments.

This company, which is headquartered in Barcelona, was created with share capital of €100 million. That capital was mostly contributed by KKR and a group of international and domestic investors, including Altamar and Deutsche Finance Group. The rest of the shares are owned by Jaime Lacasa and Jorge Benjumeda, founders of Elix.

The idea is that this capital contribution could be doubled with indebtedness. The plan involves purchasing around four buildings over three years and subjecting them to complete renovations before putting them on the market as rental homes once they have been refurbished. That rental income will feed the Socimi, which plans to rotate its asset portfolio every three years.

Elix will be the company responsible for converting the properties, and so it is acting as an industrial partner. With this vehicle, the company will be able to scale up its business model, which until now had been very concentrated in the El Eixample district of Barcelona. The company, founded in 2003, expanded its activity to Madrid last year (…).

New recruit

In parallel to its Socimi, Elix is pushing ahead with its business, to which end it has hired a new director to strengthen its real estate area. The company has recruited Rafael Vázquez to lead the management of its property portfolio.

The company’s newest member will lead an area that handles around 1,000 properties and which is expected to include another forty new buildings (to be renovated) thanks to the more than €200 million of funding that the Socimi Elix Vintage Residencial has available to spend on assets in the Spanish and Catalan capitals.

Vázquez, who has more than fifteen years of experience in the sector, joined the firm from Encore Captial Group, a company for which he carried out asset recovery services in Spain. The executive holds a degree in Architecture and an MBA from the IE business school.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake