Tag: Optimum III

Optimum III Acquires Residential Building in Terrassa for €1.5M

29 January 2018 – Eje Prime

The Socimi Optimum III is starting 2018 in the same way that it finished 2017: by going shopping. The Catalan company has purchased a package of assets comprising 17 homes and 31 parking spaces in Terrassa, a town on the outskirts of Barcelona, according to a report filed by the listed company with the Alternative Investment Market (MAB).

This latest purchase follows those undertaken by the Socimi in recent weeks in both the Catalan capital and Madrid. It has acquired a residential building in Hospitalet de Llobregat, and an office building in the centre of the Spanish capital.

The Socimi’s newest asset spans 1,497 m2 and, besides the 17 homes, contains two storerooms. The company, controlled by BMB Investment Management and Bluemountain, has reported that 100% of the apartments are already occupied, mainly on a rental basis (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Optimum III Buys 48 Homes & 5 Shops on Outskirts of Barcelona

22 December 2017 – Eje Prime

Optimum III’s final push in 2017 is proving dizzying. In its latest deal, the Catalan Socimi has acquired a package of assets containing 48 homes, 5 shops and 39 parking spaces in Rubí, a town on the outskirts of Barcelona, according to a statement issued on Friday by the company, which is listed on the Alternative Investment Market (MAB).

This purchase follows a series of acquisitions in recent weeks in the same Catalan city, where it bought a residential property in Hospitalet de Llobregat, as well as in Madrid, where it purchased an office building in the city centre.

The Socmi’s new asset has a surface area of 6,548 m2 and, as well as containing almost fifty homes, includes 51 storerooms. The company, controlled by BMB Investment Management and Bluemountain, has reported that 80% of the homes are already occupied, mainly under lease contracts, but just one of the five shops is currently leased (…).

Original story: Eje Prime

Translation: Carmel Drake

Optimum III Acquires Office Building in Madrid for €10.2M

28 November 2017 – Eje Prime

Optimum III, the residential Socimi owned by BMB Investment Management and the US fund Bluemountain, is continuing to fatten up its asset portfolio with new purchases. The company has acquired part of an office building in Madrid. The purchase of this property has involved an investment of €10.2 million for the group.

The property is located at number 59 Calle José Abascal in the heart of the capital. The operation, according to the Socimi “involves the purchase of 950 m2 on the first floor; 976 m2 on the second floor; 546 m2 on the third floor; and another 546 m2 on the fifth floor”. In total, the company has acquired 3,000 m2.

The rest of the building is mixed use. The company’s plans involve leasing space to one or more companies that want to locate their offices in the property. To this end, the Socimi is planning “to undertake a small renovation to give the space a facelift”.

Optimum III is continuing to grow its asset portfolio. The Socimi’s most recent purchases include the acquisition of a residential building in the Sarrià-Sant Gervasi neighbourhood in the upper area of Barcelona, for €6.6 million. That property is located at number 46 Calle Calaf, in one of the most expensive districts in the Catalan capital.

The Socimi was created to take advantage of the decline in the real estate market in Barcelona. That was when BMB launched its third fund, Euro Re Optimum III Barcelona, focused on the residential market in the Catalan capital. BMB wanted to take advantage of its operational experience and its knowledge of the market in Barcelona to invest in residential properties for rent acquired at below market prices, contributing its experience in terms of optimisation and portfolio sales in the city. According to its backers, it is a tailor-made fund for private investors and family offices.

Optimum III’s business is different from the activity carried out by its predecessor Optimum Real Estate in several respects. Firstly, due to the reactivation of the real estate market, the average price of its acquisitions are now, approximately, €2,500/m2 in Barcelona and €2,800/m2 in Madrid, according to the group. Secondly, the capital of Spain is gaining greater weight in the portfolio; whereas Madrid accounted for 20% of the previous Socimi’s portfolio, it now accounts for 30%, compared with Barcelona’s 70%.

Moreover, leveraging the work already performed by BMB for Optimum Re Spain between December 2016 and February 2017, Optimum III has now acquired five properties in the two cities. In Barcelona, it has acquired buildings located at the intersection of Avenida Diagonal with Calle Girona; and at the junction of Calle Bruc and Calle Aragó, amongst others. BMB’s intention is to make a total investment of €100 million, between acquisitions and improvements. In this way, the portfolio of Optimum III will comprise more than twenty buildings.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Optimum III Buys Residential Building In Barcelona For €6.6M

6 July 2017 – Eje Prime

Optimum III, the residential Socimi created by BMB Investment Management and the US fund Bluemountain, is continuing to grow its portfolio of assets with new purchases. In its latest deal, the company has acquired a residential building in the neighbourhood of Sarrià-Sant Gervasi, in the upper area of Barcelona. The purchase of this property has seen the group invest €6.6 million.

The property is located at number 46 on Calle Calaf, in one of the most expensive districts in the Catalan capital. Until recently, Sarrià-Sant Gervasi was the most expensive neighbourhood in the country in which to buy a home, according to data from Tinsa’s IMIE Local Markets index. During the fourth quarter of 2016, the upper area of Barcelona became the most expensive in Spain, with an average house price per square metre of €3,901/m2, up by 8.6% compared to the fourth quarter of 2015.

Nevertheless, during the first three months of this year, the boom in Madrid saw the tables turn, with the neighbourhood of Salamanca becoming the most expensive in the country, exceeding €3,800/m2 (up by 6.8% compared to a year earlier). Meanwhile, Sarrià-Sant Gervasi was ranked in second place, with an average price of €3,778/m2 during the first quarter of the year.

Optimum III is continuing to increase its portfolio of assets (…), however, its business is different in several ways to that undertaken by its predecessor Optimum Real Estate. Firstly, due to the reactivation of the real estate market, the average price of acquisitions will now be approximately €2,500/m2 in Barcelona and €2,800/m2 in Madrid, according to the group. Secondly, the capital of Spain will play a greater role in the portfolio; the city accounted 20% of the total assets owned by the previous Socimi, whereas it will now account for 30% of the total, with Barcelona accounting for the remaining 70%.

Moreover, taking advantage of the work already performed by BMB for Optimum Re Spain between December 2016 and February 2017, Optimum III has now acquired five properties in the two cities. In Barcelona, it purchased buildings located on Avenida Diagonal at the intersection with Calle Girona, and on Calle Bruc at the junction with Calle Aragó, amongst others. BMB’s intention is to invest €100 million through the new vehicle, in the form of both acquisitions and improvements. In this way, Optimum III’s portfolio will comprise more than twenty buildings.

Optimum Real Estate, the older sister  

In parallel to Optimum III, BMB and Bluemountain are continuing to fatten up their other Socimi in Spain, Optimum Real Estate. Currently, the asset portfolio of that Socimi, which was created following the success of two vehicles constituted in 2007 to purchase residential buildings in Berlin (Germany), comprises fifteen assets located in Barcelona, in central areas such as El Eixample, Gran Vía, El Born and Ramblas, as well as one in Madrid, located at number 8, Calle San Bernardino. Optimum’s portfolio is currently valued at €63.7 million (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

GGC Will Debut On MAB As Spain’s 2nd Largest Socimi

29 June 2017 – Expansión

A new real estate company is preparing to debut on the stock market: next Tuesday, General de Galerías Comerciales (GGC) will become the thirty-ninth Socimi to trade on the Spanish stock exchange.

Like the majority of the listed real estate investment vehicles, this company will make its stock market debut on the MAB, an index designed for small businesses looking to expand that demands fewer requirements for trading. Nevertheless, given its size, General de Galerías Comerciales could compete with any of the firms on the main stock market, given that this Socimi will make its stock market debut with a market capitalisation of €2,054 million.

This value means that it will be the largest company to debut on the Alternative Investment Market ever. Until now, that position was occupied by the telephone operator Masmóvil, which, with a market capitalisation of €1,277 million, has just approved its transfer to the main market.

General de Galerías Comerciales will not only exceed the large Socimis on the MAB, including the property developer backed by the Montoro family, GMP, whose market capitalisation amounts to around €819.5 million, it will also outrank some of the large Socimis that trade on the main stock market.

In this way, the market capitalisation of General de Galerías Comerciales (€2,054 million) will exceed that of Hispania, which was the second largest Socimi on the Spanish stock market until now, with a market capitalisation of around €1,582 million. Meanwhile, Axiare and Lar España, the other two Socimis on the main market, are worth around €1,180 million and €727 million, respectively. Only Merlin Properties, with a market capitalisation of more than €5,273 million, will be larger than GGC.

What is GGC and who is its owner?

General de Galerías Comerciales is the owner of six shopping centres: Gran Plaza, in Granada; Mataró Parc, in Barcelona; La Cañada, in Marbella; Las Dunas, in Cádiz and Mediterráneo, in Almería. La Socimi is controlled by a majority shareholder, Tomás Olivo López, who also serves as the firm’s CEO.

This Murcian property developer, who has been based on Marbella for many years, founded General de Galerías Comerciales in 1995, together with his brother Ramón and Sandra Ravich (both hold minority stakes) and, since then, he has created a large real estate group, through both the development and purchase of properties.

Besides the six shopping centres, the Socimi also owns 19 urban or buildable lots of land, 17 rural plots, a commercial building, as well as several warehouses, homes, premises, offices and garages, the majority of which are located in Andalucía.

The jewel in its real estate portfolio is the La Cañada shopping centre, which, with a gross leasable area of more than 108,000 m2, is worth €675 million. The Socimi receives rental income of €24.86 million per year from this property, according to information provided in its IPO prospectus. GGC’s other large asset is the Nevada shopping centre, which it owns in Armilla (Granada); that property is worth €520 million and generates annual rental income of €32.5 million.

GCC will make its stock market debut at a value of €79 per share, a price that was fixed after CBRE performed a real estate valuation of the company’s assets, and which values its real estate portfolio at more than €2,000 million.

The most recent Socimis to debut on the stock market have been Albirana Properties, with residential assets controlled by Blackstone; Colón Viviendas, managed by Azora and Optimum III, which debuted on the stock market on 16 May with a portfolio comprising six residential buildings and a valuation of €54.03 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Socimi Optimum III Will Debut On Stock Market On 16 May

11 May 2017 – Expansión

A new listed real estate investment company (Socimi) will debut on the Spanish stock market next week. The company in question is Optimum III, specialising in value-added residential assets (i.e. those requiring active management to maximise their value).

The company will debut on the MAB with a reference value of €10 per share, taking the total valuation of the company to €54.03 million. The bell will ring on 16 May.

The new Socimi is the thirty-third to debut on the MAB (four others are listed on the main stock market). Its portfolio comprises six buildings, five in Barcelona and one in Madrid, all acquired within the last three months. The properties include Diagonal 333, in Barcelona, purchased in January for €12.8 million; and General Moscardó 7, in Madrid, bought in February for €14.86 million.

The Socimi’s most recent purchase involved the building on Juan de Garay 5-7, in Barcelona, which it acquired for €1.7 million on 13 April.

The company is managed by BMB, as disclosed by Expansión. That company, which is headquartered in Barcelona, has accumulated eight funds since it was founded in 2006. The firm led by Josep Borrel also manages another Socimi that is already listed on the stock market, Optimum Real Estate.

Optimum III’s main shareholder is the American investment fund Bluemountain, which owns 83.287% of its share capital. The firm Itzarri EPSV holds another 9.2541% stake, whilst another 15 shareholders own less than 5% each.

The new Socimi has set itself an investment period of 12 months, beginning on 1 March, and the aim of liquidating its assets no later than the seven years after its debut on the stock market.

Its investment target comprises value-added assets, ranging between €2 million and €20 million per property, with an average price of around €2,500/m2. Including construction work, the investment undertaken by Optimum Re Spain will reach a total of €80 million between own funds and debt.

Arcano Valores has been the placer and registered advisor to Optimum III, which will trade under the code YOVA, whilst BNP Paribas is acting as the liquidity provider.

Original story: Expansión (by Rocío Ruiz and José Orihuel)

Translation: Carmel Drake

Rental Housing Is Booming Following The Crisis

26 October 2016 – El Economista

The rental market, which had never really caught on before in Spain, is now enjoying a genuine boom following the economic crisis. The employment instability experienced in recent years and the inability of people to buy a home in the face of mortgage restrictions have raised the prominence of the rental market in Spain, which now accounts for 15.6% (of the total housing stock), a ratio not seen since 1987, according to the latest data from the Bank of Spain and reported by Idealista. By contrast, the percentage of owned homes has decreased to 77.3%, a figure not seen since 1988.

With this data on the table, it is logical to think that the decrease in owned homes this year will exceed the figure recorded in 2015. Specifically, last year, there was a decrease (in the number of rental properties) of almost 9% from the peaks registered in 2002, when owned homes accounted for 84.72% of the total housing stock.

The increase in demand for rental properties has had a significant impact on prices. After seven years of continuous decreases, which peaked at 25% in some cases, the first increase – of 3% on average – was recorded in 2015. The impact on rental prices was felt most acutely in the country’s ten largest cities, led by Barcelona, where prices rose by 17% on average.

Although the supply has also increased since then, average rental prices have continued to rise and according to pisos.com, they increased by 5.09% during the third quarter of 2016. In this way, the average rental price amounted to €661 in September 2016 for a typical home with an average surface area of 112 m2. In comparative terms, this figure represents a 0.3% increase compared to August. Nevertheless, the YoY increase amounted to 9.26%.

These average increases are symbolic if we focus on specific areas in Madrid and Barcelona, where potential rental clients look for properties in central, prime areas, that are well connected (in terms of transport links). Thus, in the Catalan neighbourhoods of Sant Martí, Gràcia and Sants-Montjuïc, prices are rising by between 12% and 16% p.a..

The real estate market itself is not oblivious to this trend and for this reason, a wave of Socimis are getting reach to focus on the rental housing sector.

For the time being, Fidere and Optimum III are the only Socimis that are actually up and running. Imminent debuts are expected from Alquiler Seguro, with its Socimi Quid Pro Quo, which will have 625 units in its first phase, and Domo Activos Socimi, the cooperative manager, with its portfolio of 1,400 units. The Valencian group Inveriplus, the US fund Blackstone – with Albinara Properties, Pegarena and Tourmalet – and Testa Residencial, with 4,700 homes, are also expected to enter the market.

Original story: El Economista (by Alba Brualla and Cristina Alonso)

Translation: Carmel Drake