Millenium Socimi to Undertake €250-Million Capital Increase

25 November 2019 – Millennium, a socimi that invests in the hospitality sector, plans to undertake a €250-million capital increase next year to expand its portfolio and subsequently move from Spain’s MAB to its larger. The socimi is looking to double its portfolio to one billion euros and make the move within the next two to three years.

Millenium also expects to take on debts of 250 million euros to achieve its goals.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Millenium Acquires Hotel Meliá Bilbao for €49.2 Million

8 November 2019 – Millenium Hotels has acquired the Meliá hotel in Bilbao for 49.2 million euros, according to a note sent to the Alternative Stock Market (MAB).

The hotel is located between the Euskalduna Palace and the Guggenheim, in the Basque Country. The previous owners of the asset included the Riberas family, which controls Gestamp. Meliá will continue to manage the hotel business.

Original Story: Cinco Dias – A. S.

Adaptation/Translation: Richard D. K. Turner

Millenium Acquires Asturias Hotel in Madrid from Platinum for €82 Million

1 November 2019 The socimi Millenium has acquired the former Asturias hotel in central Madrid from the Platinum Estates group, which is controlled by the Hong Kong-based investor Harry Mohinani, for €82 million.

Millenium plans to refurbish the hotel and reopen it in 2021 in conjunction with Marriott’s W Hotels brand., The hotel is on the central Madrid square of Canalejas.

The 5-star, 136-room hotel will have furniture inspired by angels’ wings, round beds and bathrooms with transparent walls. The larger rooms will have work areas, dressing rooms and terraces with private jacuzzis.

Original Story: Expansión – Rocío Ruiz

Adaptation/Translation: Richard D. K. Turner

Trivium & Millenium to Debut on MAB This Week

1 July 2019 – Richard D. K. Turner

Trivium Real Estate and Millennium Hotel Real Estate  are set to debut on Spain’s Alternative Stock Market (MAB) this week. The two socimis will start trading at 51 and 5 euros per share, respectively, becoming the sixth and seventh company to enter the market in the year.

Trivium, which is specialised in the management of commercial premises has a valuation estimated at more than 255 million euros, based on a portfolio of properties worth €488 million.

Millennium Hotels Real Estate I runs two existing hotels and has three more in development.

Original Story: Expansión

 

Socimis to Account for 66% of Listings on Spain’s MAB by July

25 June 2019

Three socimis, Millenium, Inbest and La Finca, will begin trading on Spain’s Alternative Stock Market (MAB) in the near future. After they do, socimis will account for 69 of the 103, listed companies on the exchange, equal to two-thirds of the index.

The MAB was created in 2006 and opened to small and medium-sized companies in 2008. The platform is a good vehicle for such companies since trading is normal and the market is well-regulated, but the bureaucratic hurdles to list a new company on the exchange are less intimidating.

The Spanish government approved the regulatory framework for socimis in 2012, and Entrecampos and Promorent first went public in 2013. General de Galerías Comerciales, GMP Property and Testa Residencial are the three largest listed socimis on the MAB.

To join the MAB, companies must have fully paid-up capital, audited accounts and list through an initial public offering with a minimum free float of 2m.

Original Story: ABC – Moncho Veloso

Millenium Group Resumes Its Hotel Socimi’s Activity

15 March 2017 – Cinco Días

The Millenium group has resumed its plans to launch a hotel Socimi. Following a break caused by the absence of a Government and the misgivings of some of its investors, the company has returned to the project.

The aim of the firm led by Javier Illán, which has now constituted the Socimi Millenium Hotels Real Estate, involves listing the company on the stock market in 2019, whereby maximising the term permitted for that purpose. Meanwhile, the vehicle is working hard to secure high profile investors and acquire hotel establishments.

Millenium plans to raise around €400 million from investors and expects that its Socimi will have a market valuation of between €650 million and €700 million when its debuts. For the time being, the company does not have a registered advisor for its debut on the stock market, but it has received support from investors who have participated in its investments since 2000, including large homegrown and overseas real estate mutual institutions and pension funds.

For new investors, Millenium has established a minimum entry ticket of €5 million. Moreover, it has not ruled out the possibility of allowing hotel owners to take a share in its share capital in exchange for “gifting” the property to its portfolio. Regarding the debut on the stock market, the company may open up another stock tranche, with a lower minimum investment of around €250,000, to give liquidity to its shares.

The vehicle is expected to acquire around thirty hotels, including those that the group already owns, such as the Hesperia on Paseo de la Castellana, the Hotusa in Plaza de Castilla and the Tryp Chamberí, all in the centre of Madrid.

The Socimi will acquire urban and vacation hotels, however, Javier Illán states that they are also analysing cities that receive lots of tourist visitors. Besides Madrid and Barcelona, he points to other major capitals such as Málaga, Sevilla, Córdoba, Granada, Bilbao, San Sebastián and Valencia. The Canary Islands and the Balearic Islands, together with the Costa del Sol, will be its areas of focus in the vacation segment, all areas that have been under the spotlight of domestic and international investors alike, over the last year.

This year, Illán hopes to close around ten acquisitions on which he expects to spend around €200 million. He also acknowledges that the company is holding talks with all of the hotel chains interested in operating lease contracts.

For the time being, none of these operations has materialised and the hope is that they will be completed one by one and not in batches to avoid acquiring unwanted assets.

The Director also assures that he intends for 70% of the portfolio of establishments to require investment for their repositioning and refurbishment (value added, in English), which whereby differentiates it from the model adopted by Hispania in the vehicle that it created together with Barceló: Bay.

The group, which specialises in the development of luxury residential properties and commercial premises is carrying out detailed analysis with a view to creating a Board of Directors for the Socimi, which will mainly comprise independent directors.

Original story: Cinco Días (by L. Salces and A. Simón)

Translation: Carmel Drake

Hotel Socimis Get Ready To Invade The MAB

16 March 2016 – Cinco Días

Hotel Socimis are getting ready to colonise the Alternative Investment Market (MAB). Hotel chains of all sizes are analysing this vehicle in light of the tax incentives that it offers. More than six companies are already working on their debuts.

Bay, the vehicle created by Hispania and Barcelona, fired the starting gun in the hotel Socimi race. Socimis are vehicles whose activity involves real estate investment, and they also offer tax incentives for investors. “This year, the hotel Socimis will position themselves in the market, with urban properties and holiday resorts”, says Bruno Hallé, Managing Partner at the consultancy firm Magma Hospitality, who highlights the appeal that the Spanish hotel industry holds for both foreign travellers and investors.

The vehicle is being analysed by hotel groups of all sizes (small, medium and large) that have a lot of real estate on their balance sheets and that view this option as an alternative for obtaining liquidity and continuing with their growth strategies, as well as of separating their hotel activity out from their assets. In the case of Bay, it owns a portfolio of 16 vacation hotels, which also includes two shopping centres. That Socimi will soon debut on the MAB.

For other Socimis, the MAB has also become the launch pad. Of the 15 Socimis now operating on that platform, three are hotel companies: Obsido, Trajano and Promorent, and another six such companies are planned over the next few months.

“The Socimi is a vehicle that anyone working in the real estate sector has to consider”, says Antonio Fernández Hernando, President of Armabex, one of the registered advisors to the MAB that specialises in Socimis. It is currently promoting Bluebay, the hotel chain owned by Jamal Satli Iglesias, which has been managing the Hotel Miguel Ángel in Madrid for the last few months. Sources at the hotel group acknowledge that no specific decisions have been taken yet about the assets that are going to be incorporated into this vehicle, but according to estimates, it will have a value of between €450 million and €500 million.

The valuation of the most urgent project that Armabex is working on is much smaller. It will have just one hotel, in the North of Spain, and is owned by a family group, which also plans to launch another vehicle of this type with another four properties.

Behind them is a list of projects under consideration, including one that Antonio Fernández Hernando says has an initial valuation of €150 million.

Among the investors who have realised their plans to launch pure hotel Socimis is Millenium. The group, chaired by Javier Illán, is evaluating the option of creating a hotel Socimi and has set an investment objective of €300 million, which could increase to €500 million, in both the holiday and urban segments.

Besides the Socimis, another alternative preferred by hotel groups in recent years has been the creation of joint ventures with investment firms. Such is the case of Meliá, which launched a company with Starwood Capital, to which it sold a portfolio of six properties for €176 million. “The future of the Socimis will involve the creation of multi-brand vehicles, like the ones that already exist in the US”, says Hallé, who acknowledges that the sector is in its infancy and will become more established over the next few years.

Original story: Cinco Días (by Laura Salces Acebes and Pablo Martín Simón)

Translation: Carmel Drake