The BME Suspends Trading Of Obsido’s Shares

3 May 2016 – Gestiona Tu Dinero

The Board of Directors of ‘Bolsas y Mercados Españoles’ (BME or the Spanish Stock Exchanges and Markets) has suspended trading of shares in the Socimi Obsido, after the company reported that it was unable to provide its audited annual accounts for 2015 to the Alternative Investment Market (Mercado Alternativo Bursátil or MAB) within the timeframe prescribed by law. The company’s shares have plummeted by 62% since its debut last year.

In a significant event notice, the company explained that the reason for the delay “comes as a result of internal difficulties, although the annual accounts and management report were unanimously approved by the Board of Directors at the general shareholders’ meeting, which was held on 25 March 2016”. Sources at the company insist that the accounts will be published “as soon as possible, and, at the very latest, within the next week”, according to the notice dated 30 April.

Obsido debuted on the MAB on 4 September 2015, in a year marked by a flood of IPOs by the Socimis. But it has followed a very different path to those taken by other firms in the sector, with its share price plummeting by 62%, from €19.40 at its debut to its current value of around €7.22.

Obsido was the first Spanish company with Norwegian shareholders to list on the Spanish stock exchange and the seventh Socimi to join the MAB family. At the time, its assets comprised two hotels in Costa del Sol: the Hotel Marbella Inn and the Diana Park apart hotel, the first is located in the centre of Marbella and the second in the town of Estepona.

The company was founded in 2014 with a share capital of €5,512,930, distributed between the Founding Partners, including the Spaniard Joaquín Hinojosa and the Norwegian Häkan Tollefsen, along with almost one hundred Norwegian investors who held the remaining 33.66% stake.

Sources at Obsido are committed to acquiring projects, tourist complexes and hotels in good locations and with potential to be done up. They acquire assets to refurbish them and fit them out. According to the explanation provided by the Socimi in its brochure when it joined the MAB, it wants to focus on establishments “where the current owners have financing problems” or “those whose structures may be improved, through a proper and considered injection of capital”.

Original story: Gestiona Tu Dinero (by Clara Alba)

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

Socimis Account For Almost One Third Of The MAB

14 March 2016 – El Economista

Almost one third of the 49 companies currently trading on the Alternative Investment Market (MAB) are Socimis. The real estate investment vehicles have a combined market capitalisation of €1,600 million and have led the debuts on this market, which have accompanied the recovery of the sector.

The first Socimi to make the move onto this growing business market was Entrecampos, which debuted in November 2013, a year in which Promorent also joined the exchange. In the middle of 2012, the Ministry of Development decided to improve the regulations governing Socimis – created in 2009 – whereby relaxing the requirements for their constitution, in relation to capital and the number of shareholders.

Despite that, in 2014, only two Socimis debuted on the MAB, namely Mercal and Obsido; the latter specialises in hotel assets.

The presence of Socimis was almost symbolic until in 2015, when there was also a change of direction in the real estate sector and this type of company – very common in other countries similar to our own – burst onto the MAB, which had been questioned after having witnessed some high profile failures (Gowex, Grupo Nostrum and Bodaclick, amongst others).

Last year, seven Socimis debuted on the MAB. They included Trajano Iberia, which is managed and promoted by a division of Deutsche Bank; Uro Property, whose portfolio mainly comprises bank branches leased to Santander; Corpfin Capital Prime Retail II; Autonomy; Fidere; Zambal; and Zaragoza Properties, which owns a stake in the Puerto Venecia Shopping Resort shopping centre in Zaragoza.

So far this year, four Socimis have debuted on the MAB, namely, Heref Habaneras, owner of the Habaneras shopping centre (in Torrevieja); Corpfin Capital Prime Retail III; Inversiones Doalca and Jaba I Inversiones Inmobiliarias. Indeed, the last two made their debuts on Friday.

Zambal is the Socimi with the largest market capitalisation on the MAB, almost €570 million, followed by Uro Property (€218 million) and Fidere (€192 million). Promorent and Obsido have the smallest market capitalisations in the Socimi segment on the MAB, with €4.3 million and €6.6 million, respectively.

The tax advantages of these vehicles for investors (they are exempt from Corporation Tax, although they must distribute almost 80% of the profit that is not reinvested in the form of dividends) are part of their appeal.

Nevertheless, even though the MAB is still growing and increasingly more companies are joining it, the heavy weight Socimis are listed on the main stock market (Hispania, Axiare, Lar España Real Estate) and Merlin Properties is even listed on the Ibex 35.

Original story: El Economista

Translation: Carmel Drake

Socimi Fever Shakes Up The Stock Market

28 September 2015 – El Economista

After a flurry of activity during 2015, Spain now has 14 listed Socimis, of which 10 trade on the MAB. And this figure is expected to continue to grow over the coming months.

Last week, two Socimis went public on the Alternative Investment Market (‘Mercado Alternativo Bursátil’ or MAB). The first, Autonomy Spain, debuted with an increase of 1.52%, to €16.75.

Autonomy is the parent company of a group that currently comprises two sub-Socimis. The group’s real estate portfolio contains six office buildings – five located in the Community of Madrid and one in Cataluña.

A day later, it was the turn of the Socimi Corpfin Capital Prime Retail II, which became the tenth real estate investment company to go public on the MAB.

The company, which has already invested €75 million in retail premises in “prime” areas of Madrid, San Sebastián, Burgos and Vitoria, expects to invest a further €35 million before November 2016, whereby taking its total investment to €110 million.

This is the first Socimi that the private equity firm Corpfin Capital has listed publicly. The firm also has plans to list another Socimi, Corpfin Capital III, through which it holds joint investments in 8 real estate assets.

The week before, Zaragoza Properties, which owns a stake in the Puerto Venecia Shopping Resort shopping centre in Zaragoza, debuted on the MAB.

Also this year, the Socimi Obsido entered the market for small companies. Its growth plans involve the purchase of hotels in Spain’s principal tourist destinations.

In addition, Trajano Iberia debuted on the stock market (in July). It is managed and promoted by a division of Deutsche Bank, and focuses on “semi prime” offices in Madrid and Barcelona; “prime” offices in secondary cities, shopping centres, and logistics assets.

Also in July, Mercal went public with a portfolio of assets in strategic locations in Spain. Four months before that Uro Property Holding, which owns one third of Santander’s bank branches, began trading on the MAB with a valuation of €259.7 million.

The Socimis Entrecampos, Fidere and Promorent also trade on the MAB, but the largest Socimis, namely Merlin Properties, Hispania, Lar España Real Estate and Axiare, all trade on the main stock exchange. Between them, they had purchased assets amounting to more than €3,100 million as at the middle of August, strengthened by the funds raised through their respective capital increases.

Even Acciona is evaluating the possibility of creating a Socimi for its real estate assets, and this Monday, the General Shareholders’ Meeting of Testa is expected to approve the conversion of the company into a Socimi after it was acquired by Merlin.

Original story: El Economista

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