Tag: Optimum Re

Cerberus Extends €30.9-Million Loan to Optimum RE After Acquisition

24 September 2019 – The American private equity firm Cerberus, through its Irish subsidiary Promontoria Bravo, has granted a €30.9 million loan to the socimi Optimum RE. The unsecured loans were granted in two separate agreements worth 28.9 million euros and 1.9 million euros.

Optimum was able to substitute the new loans for a previous, secured loan worth 28.9 million euros. Promontoria Bravo acquired 99.4% of the socimi in September for €69 million.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Cerberus Submits Bid to Acquire Socimi Optimum Re for €70.5M

13 June 2019 – Expansión

The US fund Cerberus has submitted an offer to acquire 100% of the Socimi Optimum Re Spain, which is listed on the MAB with a market capitalisation of €60.5 million.

Through its shell company Promotora Holding 295, Cerberus is offering €14.10 per share, which represents a premium of 16.5% over the Socimi’s closing share price yesterday of €12.10. As such, Cerberus is valuing the Socimi at €70.5 million.

Optimum Re was created in 2016 and has invested €65 million in the purchase of buildings and another €5 million in the renovation of homes. As at 31 December 2018, its assets were worth €104.77 million.

Original story: Expansión (by S.S.)

Translation/Summary: Carmel Drake

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

Optimum RE Debuts On MAB With A €50M Residential Portfolio

28 September 2016 – Idealista

Optimum Re Spain is set to debut on the Alternative Investment Market (MAB) today (28 September). (…).

According to its market entry document, Optimum currently owns a portfolio of 14 residential buildings located in prime areas, which also receive high numbers of tourist visits. 13 of the buildings are located in Barcelona and the other one is in Madrid. The Socimi has also signed a purchase commitment to add another property to its portfolio on 31 October, located in the Catalan capital. These buildings comprise 186 flats in total and 30 commercial premises.

The document also reveals that the Socimi has paid €57 million net for those 14 properties, although their market value is estimated to amount to €108.4 million, using prices per sqm from specialist online portals such as Idealista as the benchmark. Moreover, their average occupancy rate is 75%.

The company’s strategy is to acquire entire residential buildings and then to sell them off subsequently, flat by flat, to obtain greater profits. “The company’s aim is to offer profitable investments with controlled risk and an absolute return based on a rising market driven by economic recovery: rental income and capital appreciation are being generated on the basis of selective acquisition and active management of the residential properties in Barcelona and Madrid”, said sources at the company.

The company added that, “we are diversifying our property portfolio, focusing on central areas, with a special emphasis on prime areas such as Sarriá, Eixample and Ciutat Vella in Barcelona. Similarly, we invset in mid-range areas with high demand and in tourist areas, such as the popular Gracia area in Barcelona”.

The company also admitted that its main business involves buildings, which are leased out partially or in their entirety, and that it has a limited exposure to commercial premises. “Optimum’s approach involves seeking out purchase transactions at below market prices, obtaining discounts of approximately 20%, acquiring entire buildings and, after making an investment to optimise the homes and after leasing them for 3-4 years, selling them flat by flat in order to increase the sales price”, it added.

Who are its shareholders?

This Socimi is backed by several companies, such as BMB Investment Management, Anangu Grup, Orca Invest, Finicon and Body of Knowledge, along with more than fifty minority shareholders.

And those companies are in turn owned by Catalan investors and businessmen, such as for example, the Gallardo family, owner of the pharmaceutical firm Almirall, and Ángel Javier Mirallas, Head of Prosegur in Cataluña and Chairman of the Brazilian Chamber of Commerce in the autonomous region. Other shareholders include: Joan Plensa, a relative of the Catalan sculptor Jaume Plensa, and Marc Sabe Richer, Director of Fujitsu in the UK. Josep Borrell Daniel is the Chairman and CEO of Optimum Re Spain – he is a professional investor who leads the firm BMB Investment Management.

With Optimum’s debut on the MAB, there are now 24 listed Socimis in Spain, with the Socimi Keka expected to join the ranks soon. That company manages a portfolio of commercial premises and garages in Madrid, Barcelona and Sevilla, worth €14 million and is owned by two members of the Borbón family.

Original story: Idealista

Translation: Carmel Drake

Optimum Re Will Debut On The MAB On 28 September

27 September 2016 – Expansión

The Socimi Optimum Re will debut on the Alternative Investment Market (MAB) on Wednesday 28 September, after the Coordination and Incorporations Committee submitted a favourable assessment report to its Board of Directors regarding the company’s compliance with the incorporation requirements.

The company will require approval in advance from the MAB’s Board of Directors to start trading.

The company’s trading code will be ‘YORS’ and its shares will be traded through a price fixing system. Solventis is acting as the registered advisor and the company’s liquidity provider.

Taking into consideration the two capital increases performed prior to its debut on the MAB, which amounted to €16.61 million in total, the company’s Board of Directors has set a reference value for each one of its shares at €10, whereby valuing the company as a whole at €50 million.

Optimum Re is a real estate investment company managed by BMB CAP Management, which aims to provide returns derived from rental income and capital appreciation that are generated from the selective acquisition and active management of residential properties in Barcelona and Madrid. Currently, the company’s portfolio comprises fourteen properties and the firm expects to complete the acquisition of an additional building before the end of 2016.

Original story: Expansión

Translation: Carmel Drake

BMB’s Socimi Will Debut On Stock Market In June

6 March 2016 – Expansión

The real estate fund manager BMB Investment Management has already raised capital amounting to €50 million for its new Socimi, Optimum Re Spain, and is getting ready to list it on the stock exchange in June. The investors, which include Spaniards and overseas financiers, are virtually the same as those who participated in its previous funds, Optimum Berlin Property and Optimum Berlin Property Two.

Those two vehicles invested €90 million in the purchase of 60 residential buildings in Berlin between 2007 and 2015. By 2013, given the rise in prices, they had already returned 50% of the capital to investors through rental income. And although the plan was to wait until 2016 to sell the properties, they received an offer for the purchase of 50 of the buildings for €125 million in 2015, which they could not refuse. Given the success of the first two funds in Berlin, the investors have wanted to take advantage of the upwards cycle in Spain.

Last year, the firm BMB created the Socimi Optimum Re Spain, through which it has already purchased nine buildings and is finalising the acquisition of other properties.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake