15 November 2018 – Eje Prime
Almagro Capital is getting ever closer to the Alternative Investment Market (MAB). The Socimi, managed by Orfila Management and constituted in June 2017, has set itself the objective of listing between the end of this year and the beginning of 2019, according to sources at the company speaking to Eje Prime.
The company has just made the final move so that its debut on the stock market can materialise as soon as possible: it has converted itself into a limited company under the brand Almagro Capital Socimi, according to the Official Gazette of the Mercantile Registry (Borme).
Once on the MAB, the company is planning to undertake a capital increase and expand its presence in the main Spanish cities and their metropolitan areas, specifically: Valencia, Málaga, Salamanca, Granada, Bilbao and Sevilla. In all of these areas, the firm is going to adopt the same business model: to acquire housing for people aged over 65 years in which the sellers themselves become the tenants until they die.
Currently, the company has nine properties located in the city of Madrid, which range in size between 55 m2 and 585 m2 and which are worth between €300,000 and €3 million. The portfolio of homes includes assets located in the neighbourhoods of Chamberí, Goya, Chamartín, Princesa, Chopera, Lavapiés, Recoletos and Palacio.
Almagro Capital is the first Socimi oriented exclusively at the residential market for the elderly. Led by Felipe de los Ríos, the company carried out two capital increases in September: one amounting to €5.6 million and the other amounting to €13,154, as published in the Borme.
Alongside Felipe de los Ríos at the helm are José Nistal, a former director of Merrill Lynch and Ecofin; Francisco López de Posadas, founder and director of investments at Lift; and the tax expert Luis de Ulibarri – the three partners who launched Orfila Management in June 2017. To date, the manager has financed its investments with capital increases and debt.
For the time being, the company is not planning to diversify its activity or enter any new real estate segments. “We are specialising in a very powerful market niche and we want to continue backing it for a long time”, say sources at the company.
Original story: Eje Prime (by B. Seijo)
Translation: Carmel Drake