Tag: Entrecampos Cuatro

Snapshot Of The MAB’s Real Estate Companies

4 September 2017 – Expansión

An attractive tax structure and investors’ appetite for real estate assets have led to a veritable flood of Socimi debuts on the stock market in recent years. With the exception of Merlin and Colonial – which form part of the Ibex – and Axiare, Hispania and Lar España – which are listed on the main stock market – the other Socimis trade on the Alternative Investment Market (MAB). In 2013, that market opened a new segment for this type of investment vehicle, which now comprises 40 companies.

To be incorporated, Socimis must have a minimum share capital of €5 million and invest in urban properties allocated for rent. These companies, which must be listed on regulated markets, are exempt from paying Corporation Tax in exchange for fulfilling certain obligations such as the distribution of dividends in a systematic way.

The first Socimi to debut on the MAB was Entrecampos Cuatro. That company, constituted in 2004 as a merger of several companies from the Segura Rodríguez family group, was responsible for firing the Socimi-starting gun on the MAB in November 2013.

The 40 Socimis now listed on the MAB have a combined market capitalisation of more than €7,000 million and comprise a very heterogeneous group both in terms of size, as well as by specialisation and category. The companies range from family groups to institutions (with one fund or professional investor holding a stake) to publicly owned entities (with numerous shareholders).

Of the Socimis currently listed on the MAB, the largest by a long way is General de Galerías Comerciales (GGC). That Socimi, which currently has a market capitalisation of €2,547 million, debuted on the stock market in July and, despite its size, is controlled almost in its entirety by a single shareholder, the Murcian businessman Tomás Olivo. GGC is exceeded in terms of market capitalisation only by Merlin and Colonial.

GGC is followed by the Montoro family’s real estate firm GMP, in which the fund Singapore GIC owns a 30% stake. That company currently holds 27 properties in its portfolio, including several iconic buildings, such as the historical Torre BBVA (renamed Castellana 81 due to its location) and a few metres away, Castellana 77 (also known as Torre Ederra). Other large listed Socimis include Zambal, the Socimi managed by IBA Capital, with investments in offices and commercial assets; and Bay, the Socimi owned by Hispania and Barceló. The latter, which focuses on the tourist sector, held 21 assets with a gross value of €790 million at the end of last year and since then has purchased another three assets: Hotel Selomar in Benidorm for almost €16 million; Hotel Fergus Tobago in Palmanova for €20 million; and the Armadores de Puerto Rico company for €6 million.

Shopping centres are also present on the MAB. In this way, for example, Intu owns two listed shopping centres: the Socimi Asturias Retail & Leisure, owner of the Intu Asturias shopping centre (previously Parque Principado), which has a total approximate surface area of 75,000 m2; and Zaragoza Properties, owner of Puerto Venecia Shopping Resort, in Zaragoza, with a surface area of more than 200,000 m2.

Another example is the Socimi Heref Habaneras, which owns the Habaneras shopping centre in Torrevieja (Alicante).

Residential market

One of the investment segments that has gained weight amongst the specialist Socimis in recent times is the residential market. Specifically, the private equity fund Blackstone has two listed Socimis. The largest, Fidere, debuted on the stock market in June 2015 with an asset value of €304.3 million and a portfolio of 2,688 social housing properties for let purchased during the crisis.

Moreover, the fund listed another Socimi on the stock market in March, Albirana Properties, which owns more than 5,000 assets spread all over Spain, most of which are rental homes (….).

A few weeks ago, the MAB introduced a modification to its rules to tighten up the access requirements for new Socimis. This change, which came into force in August, requires Socimis to have minority shareholders in their shareholdings when they debut on the stock market. Until then, companies had a year to fulfil the requirement. This led to an intensification in terms of the number of Socimi debuts. In July alone, seven companies joined the MAB: GGC, Bay Hotels & Leisure, Grupo Ortiz, Kingbook Inversiones, AM Locales Property, Colon and Numulae (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Paralysis In Trading Amongst The MAB’s Socimis

17 January 2017 – Idealista

The Alternative Investment Market (MAB) has become the catapult for many small Socimis – the real estate investment vehicles that are obliged to debut on the stock market to maintain the tax benefits that they enjoy.

Currently, this platform is home to 28 such companies, of which 17 debuted during 2016, however, not all of them are attracting the attention of investors. What’s more, one in five is trading today at the same price per share at which they debuted and some of them haven’t registered any movements in their share prices at all, which means that they are not being traded.

Examples include some of the most recent companies to debut. One of them is Inmofam 99, a Socimi that has 10 commercial and residential assets in its portfolio, which is owned by the Hinojosa family, the founder of the Cortefiel textile group. It debuted on the MAB on 21 December 2016 at a price of €17.60 per share and it is still trading at that price almost one month later, according to data from BME, the company that manages the Spanish stock market.

The same is happening with RREF II Al Breck, which debuted on the MAB on 30 November 2016, at a price of €5.40 per share, the same price at which it is currently trading. This Socimi, controlled by a company headquartered in Luxembourg, is the owner of almost 700 assets, mainly homes located in Madrid, although it also owns retail premises, one office and several storerooms, garages and basements.

Another Socimi that finds itself in the same situation is Euro Cervantes, a company that holds two investment stakes in its portfolio: one 30% stake in GMP, the owner of homes, offices and land, and one 49% stake in La Maquinista shopping centre, the largest in Barcelona. This vehicle is owned by the Government of Singapore and has been trading at €31 per share since 22 September 2016.

Corona Patrimonial and Heref Habaneras are also experiencing very similar situations. (…).

These five Socimis together have a combined market value of €353.8 million, a figure that increases to more than €900 million in we include Zambal Spain, which has also been having a tough time. This vehicle, which owns several offices and retail premises, whose tenants are giant businesses operating in Spain, has been trading for almost 14 months (it debuted on the MAB on 1 December 2015…). It is currently trading at €1.24 per share, the same level at which it debuted, although its shares have been traded significantly. During its first month on the market, the company moved 10,000 shares and €13,000, whilst during 2016 as a whole, it moved half a million in both shares and cash. (…).

Trading plummets during first fortnight of 2017

A certain degree of apathy is being observed amongst the Socimis on the MAB in these early stages of the year. Some other vehicles should be added to the list above, including Corpfin Capital Prime Retail, Fidere Patrimonio, GMP Property, Hadley Investments, Inversiones Doalca and Mercal Inmuebles. In fact, of the 28 Socimis trading on this platform, only five have been traded, to a greater or lesser extent, during the first fortnight of January.

The most liquid of all of them is Entrecampos Cuatro, the first Socimi to debut on the stock market (back in November 2013) and whose portfolio mainly contains homes, premises, offices and land. In two weeks, this vehicle has seen 188,000 shares traded for €350,000.

The second most liquid has been Trajano Iberia…with 9,000 shares traded for €91,000. It is followed by the office specialist Autonomy Spain Real Estate (3,000 shares traded for €51,000); Vbare Iberian Properties (2,000 shares traded for €32,000); and Optimum RE (€3,000 traded). The latter two hold homes in their portfolios.

As such, and despite the fact that investors do not normally back Socimis on the MAB (because they are smaller entities with less liquidity…), it is true that we have found some companies that have managed to increase their value by double digits since they debuted on the platform, such as Entrecampos and Optimum, which are amongst the few that have seen movement in their shares during the first two weeks of the year.

Original story: Idealista (by Ana. P. Alarcos)

Translation: Carmel Drake

Entrecampos: the Socimis Can Drive 5% Profitability

From the family business dating 50 years back to the leading Socimi operating in Spain. This is the journey of the group controlled by the Segura Rodriguez family who set up Entrecampos Cuatro, the first real estate investment trust (Socimi) in Spain.

It has been in the marketplace since 1958 and its offices are scattered all over Spain and there is one in Berlin.

¨First, we sold assets and kept some for ourselves to rent them. In 2000 we decided to promote assets for rent exclusively. We have got entire buildings and some property in bulk¨ informes Ignacio Segura, the CEO of the company. Ignacio and his siblings: Carlos, Clara and Lourdes, control about 96% of the capital. The remaining 3.74% is divided among 29 other shareholders.

Entrecampos Cuatro began its career as the first Socimi on the stock market on 28th November (precisely on Spanish MAB – Alternative Stock Market). (…)

¨We have separated the assets which were not valid for a Socimi and now our portfolio contains 100% rent¨ says Segura.

The company debuted with the value of 1.59 Euros per asset. The second one, Promorent, was launched yesterday. (…)

The firm was estimated to be worth 86,9 millon Euros. Its asset portfolio´s value reaches 102 millions. 36.8% of the properties are office spaces, 29.5% houses and 19.6% locals. Most of them are situated in Madrid (53.9%), Zaragoza (18.6%) and Berlin (12.5%). “All the property is for rent and 87% of the space is occupied” assures the Director.

Shareholders

The Seguros reckon that the Spanish Reits will be a long-term success. “A small shareholder might be interested in investing in Socimi because of the security of sharing the benefits. And they will be always present if shares are well maintained” says Segura.

“The profitability from the rent can turn to be 4 – 5%” adds his sister and chairwoman. “We want the other patrimonies similar to ours to incorporate in the company.”

Thus, they do not rule out alliance with other Socimis, although without loosing the ´family business´identity.

 

Source: Expansión

Entrecampos, the first Socimi to enter the Alternative Stock Market.

 The real estate business is taking a different shape in the market. Entrecampos will start on the next 28th November its path in the Alternative Stock Market (ASM). And it will do so with the new alternative of the Socimi (listed public limited companies for real estate investment), a financial vehicle oriented to those companies renting buildings. “We represent a very different business to the one of the real estate companies listed in the stock exchange. The rental business has already digested the crisis, decreasing the rents. It is an activity which continues to be necessary”, Ignacio Segura, managing director at Entrecampos, explains. The company will start operating at a price of 1,59 Euros per share and will have 54,6 million  bonds  (representing  a  value  around  86,8  million  Euros).  In  this  operation, Entrecampos has been assessed legally by DLA Piper and by VGM Advisory Partners as a registered counselor.

The changed to the ASM takes place after the legal reform of last December. “We have left the market when the law has allowed us to do so”, Segura declares. The change in the law made the criteria to create the socimis more flexible, improving its taxation (0% on the company tax) and opening new ways to be listed with its negotiation in multilateral management systems, which are less strict than the traditional stock exchanges. This impulse has motivated that other companies within the sector would also be working in their change to that market.

Entrecampos pretends “to consolidate, grow and prevail in time” with the listing in the ASM, Segura declares. He admits that, generally, there can be some mistrust within investors to enter a company linked to the Spanish real estate sector. However, he hopes to catch the interest of other patrimonies wishing to enter an already consolidated socimi. “The future of the socimi will be linked to the patrimonial mergers”, he comments.

Entrecampos has some presence abroad (12,8% of its properties is located in Germany). However, Segura dismisses the entrance of foreign investors. “Before working with foreign patrimony it is necessary for us to grow”, he points out.

Source: Expansión