Tomás Olivo Buys 2 million m2 of Land in Marbella

12 March 2019 – Murcia Economía

General de Galerias Comerciales, the Socimi owned by the Murcian businessman Tomás Olivo, has purchased 2 million m2 of land in Marbella, which is thought to be key for the development of the city.

The Socimi paid €25.73 million plus taxes for the plots, which are located to the north of the La Cañada shopping centre, also owned by Olivo.

When the land was put up for sale last year, it generated little interest as only a quarter of the plots are currently developable, under the governing PGOU. However, sources report that Olivo plans to put all of the land to work as soon as possible.

Original story: Murcia Economía

Translation: Carmel Drake

GGC Acquires El Mirador de Jinámar Shopping Centre for €45M

30 November 2018 – Eje Prime

General de Galerías Comerciales is now the owner of El Mirador de Jinámar. The Socimi led by the Murcian businessman Tomás Olivo has acquired the commercial complex located in the Canary Islands for €45 million. The company has been advised by Cushman & Wakefield during the operation.

El Mirador de Jinámar is the largest retail space in the Canary Islands. The asset has a total surface area of 50,000 m2, of which 11,300 m2 is dedicated to the first hypermarket that Eroski opened in the region. In fact, the Spanish supermarket chain is one of the drivers of the complex, together with the property developer Ambrosio Jiménez.

Since November 2010, the Mirador de Jinámar has housed a total of 120 establishments in its commercial area. Distributed over two floors, some of the tenants of the property include firms from the Inditex group, as well as H&M, Cortefiel and Primark (whose store exceeds 5,000 m2, making it the Irish company’s largest in the Canary Islands).

The complex is located in Jinámar, a neighbourhood located between the municipalities of Las Palmas de Gran Canaria and Telde, the two most important cities on the island. The complex also has a parking area with capacity for more than 40,000 vehicles. In a second phase, which is still pending, the centre is planning to expand its offer to include 45,000 m2 of additional space, which will be allocated to DIY and homeware firms (…).

Meanwhile, General de Galerías Comerciales made its debut on the Alternative Investment Market (MAB) in July 2017. The company has twenty years of experience undertaking its activity right across the value chain, from the purchase of land to the management of assets.

The main assets in its portfolio are retail parks and shopping centres in Spain, such as La Cañada (Marbella), Mediterráneo (Almería), Mataró Parc (Mataró), Gran Plaza (Almería), Las Dunas and Nevada Shopping (Granada). The company also has an extensive portfolio of residential assets and retail premises, as well as land, primarily in the south of Spain. When the company made its debut on the MAB, its portfolio of assets was worth €1.9 billion.

Original story: Eje Prime 

Translation: Carmel Drake

GGC Will Debut On MAB As Spain’s 2nd Largest Socimi

29 June 2017 – Expansión

A new real estate company is preparing to debut on the stock market: next Tuesday, General de Galerías Comerciales (GGC) will become the thirty-ninth Socimi to trade on the Spanish stock exchange.

Like the majority of the listed real estate investment vehicles, this company will make its stock market debut on the MAB, an index designed for small businesses looking to expand that demands fewer requirements for trading. Nevertheless, given its size, General de Galerías Comerciales could compete with any of the firms on the main stock market, given that this Socimi will make its stock market debut with a market capitalisation of €2,054 million.

This value means that it will be the largest company to debut on the Alternative Investment Market ever. Until now, that position was occupied by the telephone operator Masmóvil, which, with a market capitalisation of €1,277 million, has just approved its transfer to the main market.

General de Galerías Comerciales will not only exceed the large Socimis on the MAB, including the property developer backed by the Montoro family, GMP, whose market capitalisation amounts to around €819.5 million, it will also outrank some of the large Socimis that trade on the main stock market.

In this way, the market capitalisation of General de Galerías Comerciales (€2,054 million) will exceed that of Hispania, which was the second largest Socimi on the Spanish stock market until now, with a market capitalisation of around €1,582 million. Meanwhile, Axiare and Lar España, the other two Socimis on the main market, are worth around €1,180 million and €727 million, respectively. Only Merlin Properties, with a market capitalisation of more than €5,273 million, will be larger than GGC.

What is GGC and who is its owner?

General de Galerías Comerciales is the owner of six shopping centres: Gran Plaza, in Granada; Mataró Parc, in Barcelona; La Cañada, in Marbella; Las Dunas, in Cádiz and Mediterráneo, in Almería. La Socimi is controlled by a majority shareholder, Tomás Olivo López, who also serves as the firm’s CEO.

This Murcian property developer, who has been based on Marbella for many years, founded General de Galerías Comerciales in 1995, together with his brother Ramón and Sandra Ravich (both hold minority stakes) and, since then, he has created a large real estate group, through both the development and purchase of properties.

Besides the six shopping centres, the Socimi also owns 19 urban or buildable lots of land, 17 rural plots, a commercial building, as well as several warehouses, homes, premises, offices and garages, the majority of which are located in Andalucía.

The jewel in its real estate portfolio is the La Cañada shopping centre, which, with a gross leasable area of more than 108,000 m2, is worth €675 million. The Socimi receives rental income of €24.86 million per year from this property, according to information provided in its IPO prospectus. GGC’s other large asset is the Nevada shopping centre, which it owns in Armilla (Granada); that property is worth €520 million and generates annual rental income of €32.5 million.

GCC will make its stock market debut at a value of €79 per share, a price that was fixed after CBRE performed a real estate valuation of the company’s assets, and which values its real estate portfolio at more than €2,000 million.

The most recent Socimis to debut on the stock market have been Albirana Properties, with residential assets controlled by Blackstone; Colón Viviendas, managed by Azora and Optimum III, which debuted on the stock market on 16 May with a portfolio comprising six residential buildings and a valuation of €54.03 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

At Least Five Socimis Prepare To Debut On The MAB

17 May 2016 – El Economista

The real estate sector is booming. Its appeal has barely declined despite the political uncertainty, in fact the creation of new Socimis seems unstoppable and over the next six months, at least five more Socimis are expected to debut on the Alternative Investment Market (MAB), where 15 other similar companies are already listed. The banks are also keen to get involved in the action.

The market capitalisation of the five soon-to-be-listed Socimis will exceed €1,500 million, according to Antonio Fernández, Chairman of Armabex, which is preparing to launch as the registered advisor of these companies.

The figure will continue to grow gradually, given that the political uncertainty has not curbed investors’ interest in these vehicles, which have a special tax framework that allows them to not pay tax on their profits, provided they distribute 80% of those profits as dividends. In this way, Fernández says that he has around 40 files on the table from Socimis wanting to debut on the stock market over the next few months. “They all have very different profiles and we are receiving proposals almost every day”, he explained.

Although the names cannot be revealed yet, the Director said that one of the five Socimis is focused on the hotel sector and its initial market capitalisation amounts to €220 million. Similarly, he says that a company focusing on homes for rent with assets worth €100 million, will also debut on the MAB soon.

The fact that that specialist Socimis are starting to flourish and establish themselves in Spain is a “very good sign”, according to the sector. With this type of vehicle, the market is managing to secure money from private investors, which due to their size are not able to commit to significant investments individually in the real estate sector.

Now they have several entry points and can select both the type of assets they like, as well as the yield that they want to obtain. Moreover, the specialist Socimis are also arriving hand in hand with wealthy Spanish families, which have been accumulating assets for years and can now take advantage of the new tax benefits. That is the case of the Socimi created by the property developer Tomás Olivo through his company General de Galerias Comerciales. With a portfolio of six shopping centres, whose star asset is La Cañada (Marbella), and hundreds of other assets (land, premises and homes), it is positioning itself as the third largest Socimi behind Merlin (Ibex 35) and Hispania (Stock Exchange).

According to experts, the value of its portfolio may exceed €1,000 million. (…).

And it is not only wealthy Spanish families who are making use of these vehicle; foreign capital is also backing them and one company, financed by capital from Latin America, will soon make its debut on the stock market. On the other hand, Domo is another company that is preparing to list on the stock market, as its Chairman, Feliciano Conde, announced last year, when he explained that the company would be tailored to medium-sized investors “so that they can participate in the returns generated from the purchase of land, and the subsequent rental and sale of the homes”. The market capitalisation of that company, the first property development Socimi, will amount to €50 million.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake