US-Fund TPG Looks to Sell Portfolio of Rental Flats for €75 Million

17 September 2019 The US fund TPG announced its intention to sell nine buildings with rental flats located in Malaga, Tarrassa, Badalona, ​​Girona, Sabadell, Alicante, Valencia, Madrid and Valdemoro. The firm hopes to raise at least 75 million euros through the sale.

The nine buildings have a total of almost 400 flats and 600 parking spaces and are currently 90% occupied. TPG acquired the buildings just over two years ago through its subsidiaries Sardes Holdco and Hadley Investments.

The Catalunya Caixa Propietat FII real estate investment fund, which was liquidated, previously owned the nine residential developments.

Original Story: El Confidencial – Elena Sanz

Photo: E.S.

Adaptation/Translation: Richard D. K. Turner

Hadley Sells a Prime Commercial Premise in Pamplona for €8M

7 May 2018 – Eje Prime

Whilst some Socimis are continuing to add new assets to their portfolios in Spain, others are starting to divest. In this vein, Hadley Investments, whose sole shareholder is Stirling Adjacent Investments, has closed the sale of a property on the most prime street in Pamplona. The Socimi has received €7.8 million for the asset, according to explanations from the group.

The premises are located at number 1 Plaza Merindades, where the main fashion, technology and telephony operators are located in the city. The store has a retail surface area of 587 m2. The sales price fixed by the Socimi is equivalent to 105% of the appraisal value of the property, according to sources at Hadley.

The removal of this asset from Hadley’s portfolio represents a 1% reduction in the Socimi’s total portfolio in terms of gross leasable area. Revenues from the rental of the property in 2017 accounted for 13% of the company’s total turnover during that period.

Hadley Investments, constituted in 2014, has the objective of acquiring and managing residential rental assets in Spain. According to the group, “Hadley’s strategy is aimed at working with real estate investment opportunities in Spain, focusing on the acquisition, rental and management of residential, office and commercial assets located all over the country”.

Since its debut on the MAB in June 2016, when the Socimi was worth €30.75 million, the company has been growing its portfolio of assets, which now comprises several retail premises and residential developments located all over Spain.

Hadley Investment is the owner of a retail premise in Palma de Mallorca, located at number 125 Calle General Riera. That property has a constructed surface area of 1,780 m2, distributed over several rooms, and leased to the household décor chain Maisons du Monde.

The Socimi also owns another retail premise, located in the La Laguna shopping centre, in Santa Cruz de Tenerife, which has a surface area of almost 12,000 m2.

Finally, Hadley Investments also operates two residential assets. The first is located in Vallecas and comprises several blocks with 245 homes in total, plus 4 commercial premises and 248 garages. In 2015, a series of repairs were carried out (to the roof, structure and facilities, amongst others) to ensure the safety of the building, amounting to €134,000.

The second residential asset is located at number 1 Calle Nador, in Madrid. This asset, which is leased in its entirety to Ivima (Community of Madrid) comprises several housing blocks with 110 homes in total, plus 2 commercial premises and 110 garages.

Hadley’s sole shareholder is Stirling Adjacent Investments, a firm that is owned by the company TAO Finance 3, which is, in turn, owned by private investment funds. The management of the Socimi’s asset portfolio is carried out by Servihabitat.

Original story: Eje Prime (by C. Pareja)

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