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

The Resurgence Of Spain’s RE Market: Who’s Who?

11 July 2016 – Expansión

Spain’s real estate companies are making a name for themselves on the European map, particularly thanks tothe merger of Merlin and Metrovacesa. The Socimis and funds are also boosting the sector and are throwing themselves into the tertiary business. (…).

Following its merger with Metrovacesa, Merlin now owns assets with a gross value (GAV) of €9,317 million and a net value of €4,927 million. This portfolio of assets have catapulted it into the top ten ranking of the largest listed Socimis in Europe, all of which have a GAV of more than €9,000 million. The largest three are Unibail Rodamco (€37,800 million) Klepierre (€22,100 million) and Land Securities (€18,700 million). Merlin is ranked eighth. Unlike its European counterparts – who are much more specialised but who have a presence in more countries – Merlin is focusing its activity in Spain, although it does own some assets in Portugal and has a more diversified portfolio.


The operation between Merlin and Metrovacesa “is a clear sign of the professionalization of the sector”, according to Humphrey White, CEO of the consultancy firm Knight Frank (…).

Other, smaller Socimis are also competing in the race to grow in size, such as Axiare, Hispania Real and Lar España, which have also gained prominence in the sector. A tier below, we find other Socimis such as Cuatro, Promorent and Mercal Inmuebles, which are listed on the specialist MAB market.

Other Socimis

“One of the first effects of this merger is that the other Socimis are going to have to following the path adopted by Merlin and carry out operations of this kind, so as to place themselves at the same level in the market”, says Borja Ortega, Director of Capital Markets at JLL.

Compared with Merlin, the other Socimis in Spain are much smaller in terms of asset values. Specifically, Hispania, with GAV of €1,500 million; Lar, with €1,050 million; and Axiare with around €900 million, are above or near the threshold of €1,000 million, but light years away from the €9,300 million held by the newly merged Merlin. The large players in the capital markets, such as Blackstone and Fidelity, are demanding liquidity (in terms of share trading) from the listed companies to invest in their share capital. (…).

In this way, the Socimis are facing up to companies with a long history in the real estate sector, such as Colonial, which specialises in prime offices in Barcelona, Madrid and Paris, with assets worth almost €7,000 milion. Colonial, chaired by Juan José Brugera, is currently evaluating the possibility of investing in other European cities, particularly offices in prime locations. The company, one of the real estate companies that survived the burst of the bubble, has just approved the distribution of its first dividend since 2008. It has also launched an investment plan whereby it will allocate €400 million to the acquisition of real estate assets and undertake a €265 million capital increase.

In addition to the Socimis, another major player that has burst onto the new property map with a vengeance is Pontegadea, the investment arm of the founder of the textile empire Inditex, Amancio Ortega.


Pontegadea’s assets, worth more than €6,000 million, are located across a dozen countries in Europe, America and Asia. The company invests in buildings where some of its Zara mega-stores are opening in major cities, such as New York, Boston and Milan. In addition, it has purchased unique office buildings in prime areas such as Torre Picasso in Madrid, considered its largest single investment to date (€400 million). It also owns hotels, such as the one it has just purchased in New York for €68 million from the fund KHP Capital Partners. (…).

Original story: Expansión (by G.Martínez and R.Arroyo)

Translation: Carmel Drake

New Hotel Socimi ‘Obsido’ To Debut On MAB In Sept

5 August 2015 – Idealista

Obsido Socimi, whose portfolio of retail assets is concentrated in Málaga, is set to become the next Socimi to list on the stock market in Spain; and it will do so in September, with a market value of €21.39 million….and a share price of €19.40.

Following the recent debuts of the Socimis owned by Blackstone and Deutsche Bank, Obsido will become the seventh Socimi to list on the Alternative Investment Market (‘Mercado Alternativo Bursátil’ or MAB). (…).

According to the company’s prospectus, Obsido Socimi is backed by Spanish and Norwegian capital. Håkan Tollefsen controls a 33.165% stake in the company (365,683 shares), as does Joaquín Hinojosa, whilst the Obsido Group, the parent company, holds a 0.26% stake (2,850 shares) and the other minority shareholders own the remaining shares (33.41%).

The company, which has the support of Armabex as the registered advisor and Banco Sabadell as the liquidity provider, has focused its real estate portfolio on Málaga, specifically two hotels in Marbella, according to Antonio Fernández, President of Armabex.

“All of the properties in the company’s real estate portfolio are located in the province of Málaga. As a result, the company’s business depends to a large extent on the overall economic conditions in the province and on demand for hotels in that area in particular”.

The seventh Socimi to list on MAB

Obsido is the seventh Socimi to debut on this exchange, which is also home to small companies looking to obtain financing to accelerate their expansion and SICAVs (the investment vehicles used by high net worth individuals).

The most recent Socimi to list on MAB was Trajano Iberia, owned by Deutsche Bank, which debuted on 30 July,… In addition, Entrecampos, Mercal Inmuebles, Promorent, Uro Property and Fidere (Blackstone’s Socimi) complete the line-up of Socimis listed on this alternative investment platform.

One thing is certain, Obsido will not be the last Socimi to debut on this market. In fact, analysts expect that the MAB will receive a new wave of Socimis after the summer.

Original story: Idealista

Translation: Carmel Drake