Spain’s Socimis More than Double their Market Capitalisation in 3 Years

9 January 2020 – Expansión

Altogether Spain’s Socimis have a market capitalisation of €28 billion, having seen their value on the stock market soar by 60% in 3 years, according to a report compiled by Gloval Building Value.

The two largest Socimis, Merlin and Colonial, which are both listed on the Ibex, account for more than 40% of that total, with a combined market capitalisation of €12 billion and asset portfolios of €12.4 billion and €11.8 billion, respectively. They are followed by General de Galerías Comerciales (GGC), with a market capitalisation of €3.7 billion; GMP (€1.1 billion); Testa (€850 million) and Castellana Property (€600 million). The latter four all trade on the Alternative Investment Market (MAB).

The specialist real estate companies (Socimis) first began to take off in Spain in 2012 following a legislative change that afforded their shareholders tax benefits. In the last 7 years, more than 80 Socimis have joined the MAB and more still are expected to make their debuts over the coming years.

Just two of the major Socimis have disappeared in that time: Hispania, which was acquired by Blackstone and merged with HI Partners; and Axiare, which was absorbed by Colonial in 2018. Finally, four smaller Socimis have been excluded from trading (Bay, Kingbook, Colón and Autonomy) and one (Promorent) has transferred to the Expanding Companies segment.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Sareb’s Sale of Témpore Enters Final Phase with TPG as the Favourite

28 March 2019 – Cinco Días

Sareb’s sale of its rental home Socimi Témpore Properties is entering the home stretch. The bad bank has selected three candidates to pass through to the final round, all of which are US funds, namely, TPG (Texas Pacific Group), Ares and Round Hill, with the former currently the favourite.

Témpore, which is listed on the MAB, has a market capitalisation of €305 million and, according to the most recent assessment performed by Savills Aguirre Newman, an asset portfolio worth €338 million.

In just over a month, Sareb will announce the name of the winning investor, which will take ownership of the Socimi and its 2,249 residential properties.

Original story: Cinco Días (by A. Simón & P.M. Simón)

Translation/Summary: Carmel Drake

General de Galerías Comerciales Buys ‘Las Terrazas’ Shopping Centre for €42M

22 March 2019 – Europa Press

The Socimi General de Galerías Comerciales has purchased Las Terrazas shopping centre in Telde, Gran Canaria for €42 million. The asset has a total constructed surface area of 121,461 m2, as well as a plot measuring 22,045 m2.

The portfolio of the Socimi, which is listed on the MAB, now contains seven shopping centres, including five properties in Andalucía and one in Cataluña.

The Socimi currently has a share price of €107, up by 35.4% since its debut price of €79, taking its market capitalisation to around €2.8 billion.

Original story: Europa Press

Translation/Summary: Carmel Drake

Retail Socimi Única’s Profit Soared by 42% in 2018

26 February 2019 – Eje Prime

Única Real Estate is on a roll. The Socimi, which specialises in retail premises, has presented its results for 2018, revealing 42% higher earnings than a year earlier. Specifically, the company recorded a profit of €495,498, compared to €348,060 in 2017.

In parallel, Única generated revenues of €19.7 million, which translates into growth of 49% compared to its turnover a year earlier. The company’s operating result amounted to €858,105 in 2018, up by 45.6% compared to a year earlier.

The Socimi also reported that its real estate portfolio ended the year with a market value of €44.8 million, according to a valuation carried out by Savills Consultores Inmobiliarios. In total, Única has 36 commercial premises, spanning 8,655 m2 (…).

Looking ahead, Única’s forecasts involve executing the corporate operation in which it has been immersed since the end of 2018, and which involves the purchase of 100% of the company’s shares by Vitruvio Real Estate Socimi (…).

Única completed its stock market debut in 2018, and started trading on the Alternative Investment Market (MAB) on 27 June. The Socimi ended the year with a market capitalisation of €30.5 million and a share price of €26.60, up by 1.6% compared to its debut.

Original story: Eje Prime 

Translation: Carmel Drake

Castellana Properties Incorporates Unibail’s Shopping Centres into its Portfolio

28 November 2018 – Eje Prime

Castellana Properties is now the ninth largest Socimi in Spain. The company, which is controlled by the South African fund Vukile, has doubled the value of its portfolio to €900 million by incorporating the firm Morzal Property into the fold. Morzal is the vehicle through which Vukile purchased four shopping centres from the giant Unibail-Rodamco-Westfield in July.

The General Shareholders’ Meeting of Castellana approved the purchase of 100% of Morzal at the same price as the initial operation was closed, according to Eje Prime. The incorporation of the company, which paid Unibail-Rodamco-Westfield €490 million in July for its four assets, has been carried out through a capital increase subscribed by a non-monetary contribution of Morzal’s share capital, attributing a value of €6 per share to the shares of Castellana Properties.

Following this incorporation, the Socimi has increased its portfolio with the following shopping centres: Los Arcos (Sevilla), Bahía Sur (Cádiz), El Faro (Badajoz) and Vallsur (Valladolid). In total, the manager is adding a gross leasable area (GLA) of 121,300 m2 to reach a total of 318,622 m2 distributed all over Spain.

The market capitalisation of the company now amounts to €460 million, whilst the average value of its assets has increased from €27 million to €48 million, and its vacant space has decreased from 3.3% to 1.8%.

“The acquisition of these four shopping centres significantly strengthens our portfolio and reaffirms our commitment to the retail real estate sector in Spain”, said Alfonso Brunet, CEO of Castellana Properties.

Similarly, in terms of the future, Vukile has the commitment to inject another €200 million into Castellana over the coming years, as revealed by Eje Prime. In April, the fund subscribed an agreement with the Socimi to undertake capital increases for that maximum value in the event that it does not find the necessary partners to continue buying retail parks and shopping centres with, “given the need for financing to undertake such investments”.

Original story: Eje Prime 

Translation: Carmel Drake

Aedas Homes has a Landbank Covering 4+ years of Visibility

8 October 2018 – Nasdaq

Aedas Homes, a leading property developer in the new real estate cycle in Spain, already has enough land in its portfolio to cover deliveries until 2022, as well as a significant part of 2023, thereby confirming the delivery targets set out in its IPO prospectus. The company’s landbank (close to 90% is classified as ready-to-build) will allow it to develop up to 14,521 homes in Spain’s key residential markets and is considered by analysts to be the best in the country.

So far in 2018, the publicly traded company, with CEO David Martínez at the helm, has completed the construction of 222 homes scheduled for delivery this year, 190 of which have already been sold.  As of August 31, the company had 6,287 active units, 55% more than in December 2017, and of those, 1,623 were already under construction. These figures reflect the strength of the property developer’s operating capacity during its first year.

In 2019, the developer plans to deliver almost five times as many homes, with a delivery target of 1,055 residential units; 1,071 homes are currently under construction and 761 have been sold. In 2020, Aedas Homes will deliver 1,986 homes and reach its cruising speed in terms of launches (3,000). The plan for 2021 is to deliver 2,438 homes and begin 2,471 new projects. 2022 will mark the moment when the developer reaches its cruising speed in terms of deliveries, with plans to put 3,063 homes in the hands of customers and launch another 3,000. In 2023, the number of homes being delivered will reach 3,326.

Martínez highlighted the company’s strict compliance with the goals announced at its IPO, noting that the company returned a profit one year ahead of schedule. Specifically, the property developer earned €3.7 million during the first half of 2018, making it the first of the new large developers in Spain to become profitable, and doing so only eight months after being listed on the Madrid stock market.

“We designed a realistic business plan, meaning that we will reach our targets in the coming years: by 2020, for example, we will have delivered more than 3,200 homes. Right now, we have almost 6,300 active units across 117 developments which gives us the visibility we need in terms of our objectives,” Martínez explained.

About Aedas Homes

The property developer Aedas Homes became a listed company on 20 October 2017 in Madrid, with a market capitalization of over €1.5 billion. Aedas is an industry leader at the national level and aims to play an important role in the new cycle of the Spanish real estate sector, which must be marked by professionalism and an adherence to rigorous standards.

Aedas Homes has a fully permitted residential landbank with more than 1.5 million buildable square metres (the highest quality landbank in Spain, according to analysts). This will permit the development of 14,500 residential units in the key markets, and their surrounding areas (both in terms of real estate and finance) where Aedas operates: the Centre, Cataluña, the East & Mallorca, Andalucía and the Costa del Sol.

Original story: Nasdaq 

Edited by: Carmel Drake

Acciona Sells its Stake in Testa to Blackstone for €379M

8 October 2018 – Eje Prime

Blackstone is continuing to increase its stake in Testa. After acquiring the majority of the company in September, by purchasing the shares owned by Merlin, BBVA and Santander, now the US fund is buying the 20% stake that Acciona owns in the rental home Socimi for €379 million, according to a statement filed by the company with Spain’s National Securities and Exchange Commission (CNMV).

The closure of the operation, which has not been formalised yet, is conditional upon the completion of the sale of 50.01% of Testa’s share capital, which Blackstone agreed with Merlin, BBVA and Santander for €948 million. The fund will pay the real estate arm of Acciona €14.32 for each share that it owns in the Socimi, whereby assigning the company a total value of €1.895 billion.

Testa, which has been listed on the Alternative Investment Market (MAB) since July, owns a portfolio of assets containing more than 10,700 homes, which gave the company a market capitalisation of €1.833 billion on the day that it made its stock market debut.

Original story: Eje Prime

Translation: Carmel Drake

Colonial Earns €254M in H1 Following the Integration of Axiare

30 July 2018 – Eje Prime

Colonial recorded a net attributable profit of €254 million following the merger of Axiare. That represented a decrease of 42% for the Catalan real estate company, although it did increase its net recurrent profit, which excludes the impact of the merger, by 12% to €41 million, according to a statement filed by the company with Spain’s National Securities and Exchange Commission (CNMV).

The Socimi led by Pere Viñolas recorded revenues from rental income of €170 million to June, up by 21%. Meanwhile, the value of Colonial’s asset portfolio amounted to €11.19 billion, up by 29% with respect to the same period last year.

In terms of its value on the stock market (the group is listed on the main exchange), the new Colonial, following the integration of Axiare, achieved a market capitalisation of more than €4.4 billion at the end of the first half of the year.

Original story: Eje Prime

Translation: Carmel Drake

Testa Residencial Debuts on the MAB with a Share Price Rise of 1.44%

26 July 2018 – La Información

The shares of Testa Residencial have made their conclusive debut on the Alternative Investment Market (MAB) with a rise of 1.44% to €14.10 per share. The Socimi made its stock market debut at a price of €13.86 per share, which meant that the company became the second largest on the MAB by trading value, exceeding even some of the entities listed on the Ibex such as Indra and DIA.

The Board of Directors had established a reference price for its shares of €6, which represented a market valuation for the company as a whole of €204 million. The company’s trading code is going to be “YCPS”, Renta 4 Corporate is the Registered Advisor and Renta 4 Banco is acting as the Liquidity Provider.

Testa Residencial is the leading private company in the residential rental market in Spain (excluding portfolios owned by financial institutions). It is owned by Santander (36.8%), BBVA (25.6%), Acciona (20%) and Merlin Properties (17%).

The Socimi operates in the residential segment in Spain and has a portfolio comprising more than 10,000 homes. Its assets are primarily located in Madrid, although it also has a presence in San Sebastián, Barcelona, Las Palmas de Gran Canaria, Palma de Mallorca and Valencia. Its properties were valued at €2.276 billion by Savills Aguirre Newman at the end of 2017 and the majority of them, 77.5% of the GAV, are located in premium locations.

In addition, over the last year, the combined value of its properties has increased by almost €73 million, according to the latest data.

Testa had initially planned to make its IPO on the main stock market in June this year. The rental home Socimi wanted to make its debut through a public share sale offer (OPV) and a public subscription offer (OPS) of new shares, the latter for €130 million, both aimed at institutional investors. In the end, in light of the political situation, the firm in which Merlin Properties holds a stake decided to delay its debut until now and change its course towards the Alternative Investment Market.

Original story: La Información 

Translation: Carmel Drake

MAB Approves Testa’s Stock Market Debut with Market Capitalisation of €1.83bn

24 July 2018 – Eje Prime

Testa is getting ready to refinance its debt. The Socimi in which Santander, BBVA, Merlin and Acciona Inmobiliaria hold stakes has included the refinancing of its liability on its roadmap, given that 91% of the firm’s gross financial debt is due to expire in 2022, according to an information document prepared for its incorporation onto the Alternative Investment Market (MAB), which was published yesterday.

As at 31 March, Testa’s gross financial debt amounted to €475 million, whilst the net financial debt amounted to €415 million. In addition, in order to finance the purchase of the BuildingCenter, the company took out two more loans amounting to €230 million.

As the company explained, of the total gross financial debt, €431 million (91%) expires in 2022. The company plans to refinance its debt by resorting to different instruments.

Testa’s plans following its debut on the MAB involve continuing with its purchase process, which involves acquiring between 1,000 and 2,000 apartments each year. According to the document, the Socimi has a pipeline with a GAV of around €539 million, which represents around 2,959 apartments.

As at 31 December 2017, Testa’s portfolio comprised 9,244 homes, 295 retail premises, located in the same buildings as the homes, and an office building and parking lot in Plaza Castilla, with a combined market value of €2.276 billion. Nevertheless, that data does not include the BuildingCenter portfolio.

In March, Testa signed an agreement to acquire the residential portfolio of the real estate arm of CaixaBank, comprising 1,458 homes. To date, according to the MAB document, Testa has acquired 1,450 apartments from that portfolio for a price of €226 million.

By geographical area, the Community of Madrid accounts for approximately 65% of the gross value of the portfolio, followed by San Sebastián, with 7.2%; Barcelona, 4.1%; Las Palmas de Gran Canaria, 2.9%; Valencia, 2.5%; Toledo, 2.4%; Pamplona, 2%; Valladolid, 1.9%, and Oviedo, 1.5%.

The company, in which Santander holds a 36.8% stake; BBVA a 25.6% stake; Acciona a 20% stake and Merlin Properties a 17% stake, will make its debut on the stock market with a capitalisation of more than €1.83 billion. The company’s stock market debut has suffered several delays, but yesterday it received the green light from the MAB.

Original story: Eje Prime (by P. Riaño)

Translation: Carmel Drake