Residential Socimi Galil Capital Receives Green Light for MAB Debut

21 February 2018 – Eje Prime

A new Socimi is going to make its stock market debut in 2018. Galil Capital, a company specialising in residential assets, has received the green light from the Alternative Investment Market’s Coordination and Incorporations Committee to start trading. Worth €20.5 million, the company still has to wait for approval from the MAB’s Board of Directors, which always has the last word.

Galil Capital RE Spain has received a favourable report from the body responsible for the entry of new companies onto the MAB, to which it has submitted a reference price for its company of €10 per share.

The company’s portfolio of real estate assets comprises five buildings located in Barcelona and Madrid, which all have commercial premises on their ground floors, also owned by the Socimi.

With this new arrival, the MAB will come close to having fifty listed companies, and that is before the debut of Témpore Properties, the Socimi owned by Sareb, which plans to ring the bell before the spring. The company’s GAV amounts to €175 million, a volume that will be added to the €773 million in assets that have made their debuts on the Alternative Investment market in recent months.

Original story: Eje Prime 

Translation: Carmel Drake

CNMV Approves Colonial’s Takeover of Axiare

28 December 2017 – Eje Prime

Colonial is getting closer to the finishing line in its race to create a real estate giant. Today, Spain’s National Securities and Exchange Commission (CNMV) approved the takeover bid launched by the real estate group for the Socimi Axiare on 13 November 2017; given its size, the potential deal has had the sector on tenterhooks for the last month and a half.

The market supervisor has valued the operation to purchase the 71% of the share capital in the Madrid-based company that Colonial does not control yet at €1.033 billion. If the transaction goes ahead, the Socimi will sell non-strategic assets worth around €300 million, as Eje Prime revealed.

Through this merger, the Socimi led by Pere Viñolas, one of the real estate sector’s stars this year, is seeking to generate a giant with almost €10 billion in assets, which would threaten the position of leadership in the market currently held by Merlin.

According to the details of the takeover offer accepted by the CNMV, Colonial will pay €18.36 for each one of Axiare’s 56.30 million shares. In theory, the real estate company offered the firm led by Luis López de Herrera-Oria a payment of €18.50 per share, to which the Socimi responded by calling the operation “hostile”. Nevertheless, the distribution of Axiare’s dividend has led to a reduction in that final offer, after Colonial warned the Socimi that this fact would change the conditions of the takeover bid.

Following the approval of the stock exchange supervisor, and with CaixaBank’s bank guarantee at the ready, the period will open on Friday (29 December) for Axiare’s shareholders to take a stance, as well as for the issue of a report about the operation by the target Socimi’s Board of Directors. This period to accept the takeover bid will run from 29 December until 29 January, both inclusive. Colonial needs the support of 21.21% of the shareholders, in addition to the 28.7% stake that it already controls, which would allow the company led by Viñolas to exceed the 50% threshold in terms of its stake in the rival company.

Original story: Eje Prime

Translation: Carmel Drake

Vbare Debuts On The MAB With Almost 200 Rental Homes

27 December 2016 – Idealista

With just a few days left until the end of the year, the stock market is still receiving new Socimis. The trickle of debuts is incessant and on this occasion, the star of the show is Vbare Iberian Properties, a vehicle that owns a portfolio of residential rental assets.

The company has debuted on the stock market at a price of €12.90 per share, which represents a market capitalisation of €20.6 million, according to the consultancy firm Grant Thornton, and as such has become the twenty-eighth Socimi to trade on the MAB.

According to idealista.com, the company is backed by foreign capital (one of its main shareholders is the Israeli investment firm Value Base) and it has 183 real estate assets in its portfolio. Almost all of them are homes, but the Socimi also owns some garage spaces and some storerooms.

All of the properties are rented out and are located in the Community of Madrid. They are worth €20.84 million in total, according to Aguirre Newman. Half of the homes are located in Madrid capital, although the company also owns other homes in the municipalities of Aranjuez, Móstoles, Parla and Torrejón de Ardoz. In total, they have a useful surface area of more than 2,000 m2, comprise between one and four bedrooms and have an average occupancy rate of 72%.

One of the objectives that Vbare has set itself for the future is to raise more funds to allow it to expand its asset portfolio and to make the jump onto the main stock market, where some of the largest Socimis are already listed (Lar, Hispania and Axiare; meanwhile, Merlin Properties is listed on the Ibex).

In its market debut prospectus, the Socimi explained that it wants to centre its portfolio on residential real estate assets, aimed at middle-class tenants and located in the metropolitan areas of Spain’s major cities. In other words, areas with significant demand and with future development prospects in the short and medium term.

“Our properties are currently located in the metropolitan area of Madrid, this represents our first phase of investment. Progressively, the Socimi plans to diversify its asset portfolio by acquiring properties in the metropolitan areas of the main provincial capitals in Barcelona, Málaga, Valencia, Alicante, Bilbao, Sevilla, Zaragoza, Palma de Mallorca and La Coruña, which represent the company’s core business”.

Original story: Idealista

Translation: Carmel Drake