Tag: lease contracts

Excem Debuts on the MAB with a Market Value of €16.8M

9 July 2018 – Expansión

The Socimi dedicated to the rental of rooms for young people is going to make its stock market debut at a price of €1.40 per share. The Socimi is going to debut with a portfolio of 28 homes, which contain 181 rooms for rent, all located in the centre of Madrid.

The real estate firm Excem, which was constituted in 2015, has the aim of investing in urban properties located in central areas of Madrid, Barcelona and other main cities in Spain. It targets properties that are suitable for renovation and redecoration and subsequently leases out rooms to students and young professionals.

Currently, the Socimi is looking to extend its activity in the capital to other cities with “high demand and limited supply of these types of assets for rent”, including Barcelona, Sevilla, Valencia, Málaga, Bilbao and Santiago de Compostela, according to information provided in the explanatory prospectus that accompanies its debut on the MAB.

Around 40% of the company is controlled by Excem, a group owned by the Hatchwell family. In fact, the Socimi is chaired by David Hatchwell, who started his professional career in Goldman Sachs and HSBC before joining the group.

With the aim of undertaking its investment and growth strategy, Excem’s Socimi has conducted a number of capital increases since 2016 and has mortgaged all 28 of the homes that it holds in its portfolio.

At the moment, it has an indebtedness level equivalent to 38.5% of the value of its assets, well below the leverage limit of 70% that the company has imposed on itself.

“HOMIII.COM”.

The Socimi markets the rental of its homes through its own online platform (www.homiii.com) and by subleasing through other specialist companies. Since September last year, it has had an agreement with Uniplaces, a company from the United Kingdom specialising in reserving accommodation for students in a number of European cities. According to the prospectus, at the end of March, the firm had 175 lease contracts for its rooms (96.7% of its portfolio) with different tenants.

By virtue of the contracts, the tenants pay a monthly rent and make a contribution towards shared utilities (water, electricity, gas, internet and central heating) after handing over a deposit equivalent to one month’s worth of both concepts by way of guarantee.

Excem has the aim of achieving a gross return on each asset of between 4% and 6%, a percentage calculated as gross income from rental over the investment made. The Socimi has been created with the option of setting itself an expiry date, given that it does not rule out selling its properties once the minimum period of three years established for Socimis has come to an end, or dissolving the company after the seventh year, “depending on what the shareholders agree on the basis of the performance of the company, as well as the current and future properties in the portfolio”.

Original story: Expansión 

Translation: Carmel Drake

Axiare’s Profits Rose By 156% In Q1 2017 To €13.1M

12 May 2017 – Expansión

The listed real estate investment company (Socimi) Axiare Patrimonio recorded a net profit of €13.1 million during the first quarter of 2017, up by 156% compared to the same period last year, according to a statement filed yesterday by the company with the CNMV.

Revenues from gross rental income grew by 36%, to €13.4 million. In comparable terms, rentals grew by 4.9%.

So far this year, the Socimi has signed new lease contracts covering a surface area of 93,400 m2: 16,200 m2 relating to offices and 77,200 m2 to logistics facilities, which represents a new record.

At the end of the first quarter, the occupancy rate of Axiare’s portfolio amounted to 92.6%.

During the first quarter, Axiare signed new lease contracts for offices covering a surface area of 4,485m2, which also represents a new record.

In the logistics segment, it signed two new contracts, covering a surface area of 26,165 m2, whereby increasing the occupancy rate of the segment to 97%. Moreover, lease contracts were renegotiated for 23,456 m2 of space.

Since the end of the first quarter, Axiare has signed lease contracts for offices and logistics facilities spanning more than 63,000 m2.

So far this year, Axiare has invested €157.9 million on the purchase of four properties, to take its real estate portfolio to a record figure of more than €1,500 million.

Offices

75% of Axiare’s portfolio comprises offices, whilst 16% corresponds to logistics assets and 9% to other assets, primarily retail parks.

In addition to the €93 million raised in March through a capital increase, Axiare has obtained bank financing amounting to €119 million, whereby benefitting from the current low-interest rate environment.

According to the Socimi, with these funds, the company plans to continue with its policy of investing in real estate assets with strong potential for generating value.

Original story: Expansión

Translation: Carmel Drake

Pierre & Vacances Plans To Double Turnover In Spain By 2020

27 April 2016 – Expansión

The holiday apartment manager and developer, Pierre & Vacances, which has been operating in the Spanish market for 10 years now, has recorded average annual growth of 44% since it launched in Spain in 2005, with a portfolio of 215 apartments. Moreover, it intends to maintain that growth rate over the next few years, and whereby double its presence by 2020.

Specifically, the firm expects to expand its operations from more than 4,000 holiday apartments across 45 complexes in 2016, to 8,000 apartments by 2020, at the same time as doubling its turnover from €50 million to €100 million. In 2016, the group will incorporate five new complexes and 600 apartments. Moreover, it has renovated the Hotel El Puerto in Fuengirola.

Over the last ten years, Pierre & Vacances has invested €70 million in Spain, however, it does not currently own any assets, according to the Chairman of the Spanish subsidiary, José María Pont. One of the group’s business lines involves searching for institutional and private investors willing to purchase real estate assets with lease contracts spanning 10-15 years and returns of between 3.5% and 5% per annum. In addition, the firm has reached agreements with investment funds, which have invested €65 million in assets managed by the firm.

Looking ahead to the future, given the lack of stock in certain areas such as the Costa Brava, Balearic Islands and the Costa del Sol, the group is considering launching projects “from scratch”, including constructing and operating the assets itself. “In certain areas, the circumstances in the market lend themselves to taking on more risk”, says Pont. The Director says that Spain is one of the group’s strategic axes, along with China, where Pierre & Vacances has reached an agreement with HNA to develop five large projects over the next three years.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake