Vivenio and Aquila Capital sign asset management agreement for Spanish real estate portfolio

4 October 2018

Aquila Capital, a Hamburg-based investment manager, has signed an agreement with Vivenio, a real estate investment trust (REIT) managed by APG and Renta Corporación, for asset management services for a residential portfolio in Spain.

The agreement covers property monitoring, letting management, finance and budget controlling, business reporting, cash management and general administration for a portfolio of over EUR200M and nearly 1,100 housing units.

The units, being developed by AQ Acentor, Aquila Capital’s real estate developer in Spain, are in Madrid, Barcelona and Málaga. They include both subsidised and private housing units at various stages of construction that will be transferred progressively up to 2021.

The developments in Madrid consist of four residential complexes in the district of Villaverde and will contain more than 500 subsidised rental housing units with a 15-year lease. The Barcelona complex, located in the municipality of Sant Adrià del Besòs, will have more than 100 rental housing units. The Málaga development will consist of five complexes with a total of more than 400 rental housing units.

All the developments will have common areas and additional facilities to improve the quality of life for the residents, including co-working spaces, pools, gyms and other such amenities.

This is Vivenio’s first turnkey project and it secures an important medium- and long-term portfolio for the REIT. It also broadens Vivenio’s social and private housing proposition, underlining its leading role in the sector. Furthermore, it marks the entry of Renta Corporación and APG’s REIT to the Andalusia market, having previously performed the bulk of its operations in Madrid, Barcelona, Valencia and Palma de Mallorca.

This latest transaction means that Vivenio, which benefits from Renta Corporación’s extensive experience in the Spanish residential market, has now invested more than EUR650 million since its launch and will manage more than 2,900 housing units by 2021.

José María Cervera, Corporate General Manager of Renta Corporación, says: “This transaction will greatly expand our portfolio and signifies both our first turnkey investment and entry to new geographical areas. It also marks a major step forward in Vivenio’s growth and investment strategy, which will lead to more acquisitions that will be formalised over the coming months.”

Aquila Capital operates independently as a developer in the Spanish market through its brand AQ Acentor. The residential projects include subsidised and private housing units in the cities of Madrid, Barcelona, Málaga and Valencia. AQ Acentor is one of the largest developers of residential land in Spain and one of the few aimed at institutional investors.

“The Spanish real estate market is highly attractive to institutional investors and offers above-average profitability, especially new construction. This is further supported by a growing rent culture and stable economic growth. We are aware that there is an increasing number of investors following us into this interesting market and are convinced that our extensive experience and local presence is key to be successful in this market,” says Sven Schoel, CEO of AQ Acentor.

Property Funds World


McArthurGlen to Open 5 Luxury Outlet Centres in Spain

3 January 2018 – Cinco Días

The largest retail asset real estate firm in the world has set its sights on Spain. Simon Property Group will operate through its subsidiary in Europe, called McArthurGlen, in which it holds a 50% stake. This European firm, which specialises in luxury brand and premium outlets, plans to open five such centres in the country, according to José Luis Arenas, Director of Development at McArthurGlen in Spain, speaking to Cinco Días. In total, it plans to invest €750 million, with an average investment of €150 million per site.

McArthurGlen’s first project is already under development. It involves an outlet for luxury brands, which is being built as an extension of the Plaza Mayor shopping centre in Málaga. The firm will invest €140 million in the initiative, together with its partner Sonae Sierra, and its doors are due to open at the end of 2018 (…).

According to Arenas, “We are looking for more short-term opportunities in the north and east of Spain and we will end up entering both Madrid and Barcelona over the medium term” (…).

McArthurGlen is a company headquartered in London and founded in 1993 by the American Joey Kampfer. It is a large developer of designer outlets, given that it owns 24 centres in 8 European countries as well as in Canada, which house 3,000 stores for 1,000 brands in total. Simon Property, as the owner of 50% of the share capital, provides it with an enormous investment capacity. Meanwhile, that US real estate company, under the legal structure of a REIT or Socimi, owns 216 shopping centres around the world and has a market capitalisation of $54.95 billion (€45.7 billion), making it the largest real estate company on the planet (…).

McArthurGlen has joined forces with Sonae Sierra for this first project in Málaga, but has not ruled out teaming up with other property developers in the future. (…). Sonae Sierra is, in turn, a joint venture, between the Portuguese holding company Sonae and the British firm Grosvenor – belonging to Hugh Grosvenor, the Duke of Westminster -. Sonae Sierra owns 76 shopping centres in 14 countries (…).

In terms of the Andalucían outlet, Arenas has set the objective of having between 2 and 3 million visitors per year. “Plaza Mayor by itself already receives more than 10 million people per year and we are going to benefit from those consumers and increase the numbers with new clients. We will also attract tourists”.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Vukile Buys 2 Shopping Centres in Spain for €65.2M

7 December 2017 – Business Live

Local real estate investment trust (Reit) Vukile Property Fund closed weaker on Wednesday, following an announcement that it was acquiring two more shopping centres in Spain.

Vukile said it was set to buy the Alameda Shopping Centre and Retail Park in Pulianas, Granada for €54.5m and the Pinatar retail park in San Pedro del Pinatar for €10.7m. Vukile’s Castellana subsidiary, in which it holds a 98.3% stake, would conclude the transaction.

Vukile announced in July that Castellana had acquired a portfolio of nine retail parks in a €198m transaction and also established an in-country management team and operational platform. The acquisitions allowed Vukile, via Castellana, to leverage its operational platform and grow its Spanish portfolio of retail parks.

The territories in which Castellana operates, continue to experience strong demand for space with limited prime retail park availability, which will enhance Castellana’s retail offering, Vukile said.

Vukile was down 3.3% to R19.72 (equivalent to approximately €1.23 on 7 December 2017). It has gained 5.57% in 2017.

Vukile is the only South African-based Reit with noteworthy exposure to Spain. The other listed players that have a small exposure to the region include Schroder European Real Estate Investment Trust, Greenbay Properties and Intu.

Vukile is following in the footsteps of many local property groups by diversifying from local operations into international assets, predominantly in eastern Europe.

Catalyst Fund Managers investment analyst Mvula Seroto said local Reits have been affected by the lacklustre economic environment. “We see the potential for negative earnings surprises in some listed funds.”

Despite this, most South African-focused listed property firms were trading at discounts to their net asset values. This puts management teams in a tough position to raise new equity to fund acquisitions.

Original story: Business Live (by Maarten Mittner)

Translation: Carmel Drake

Blackstone’s Real Estate Empire in Spain

6 August 2017

The US giant controls at least 100,000 real estate assets in Spain through dozens of companies. Most of the properties are in Catalonia. When it finally completes the purchase of the Popular’s real estate portfolio, Blackstone will become the largest property development company in Spain, ahead of Sareb.

Few ordinary people have heard of Blackstone. Even when asked about it, this firm sounds more like a private mercenary company (Blackwater) than what it is: one of the largest asset managers in the world and the largest foreign investor in Spanish property.

The fund is a silent giant, with dozens of companies linked to the real estate market, of which three are publicly traded. It manages around 100,000 real estate assets, of which at least 10,000 are flats for rent and social housing (VPOs). Blackstone has also has just agreed to one of the largest real estate acquisitions in history: 51% of Banco Popular’s property portfolio. If this deal goes through, it will control the same amount of assets as Sareb, the company created by the Spanish government in 2012 to manage the property of troubled banks.

Blackstone realized that it had to have a presence in Spain in 2013. It saw clear signs that the economy was bottoming out and decided to bet on the real estate sector. That summer it finalized one of the fund’s first major deals in Spain, the purchase of public housing from the Municipal Company of Housing and Land (EMVS), which has subsequently given Blackstone a serious headache. However, this deal (along with two others involving Goldman and Sareb) signalled the beginning of a real estate recovery in Spain.

The American fund came to Spain through Magic Real Estate, a company created by, among others, Ismael Clemente, the current Managing Director of one of Ibex’s real estate companies, Merlin Properties. After purchasing some small portfolios, Blackstone realized that it had to take a stronger position in Spain.

Key moment

Its first step came in 2014 with the acquisition of Catalunya Caixa Inmobiliaria, a real estate platform renamed Anticipa. Blackstone then tried to buy Eurohypo for 3.5 billion euros, which was eventually acquired by Lone Star. It got its way with Project Hércules, in which it acquired 6.4 billion euros in problematic mortgages from Catalunya Banc.

These deals were completed by the same team that conducts all of Blackstone’s major deals in Spain: the two brains behind the deals are Diego San Jose, who has twelve years of experience in the fund; and Eduard Mendiluce, ex-director of Catalunya Banc, who has detailed knowledge of the nationalized bank’s entire portfolio and of the banking/real estate sector in general.

The Fidere (Blackstone) real estate development in Soto de Henares (Madrid).

Jean-Christophe Dubois, who oversees investments from London, and Jean-François Bossy, a financier specializing in complex operations, taxation and legal issues, also take part in all of Blackstone’s major deals.

So far, a large part of the interests of this fund in Spain are in a securitization fund, which controls the Catalunya Banc’s problematic mortgages. According to the latest official figures, the mortgage package has already been reduced from 6.4 to 4.4 billion euros. Loan delinquency stands at 64%, with Blackstone co-investing with the state-run bank restructuring fund FROB. They are investing, however, under different conditions: Blackstone has a guaranteed profitability of 13% and the public fund will only profit under a series of complex scenarios.

Blackstone is cooperating with the FROB on Catalunya Banc’s toxic mortgages, where the US fund has a guaranteed return of 13%

In addition to the securitization fund, the American fund has three companies listed in Spain (Spanish REITs): Albirana Properties Socimi, with about 5,000 rental flats valued at €500 million; Corona Patrimonial Socimi, with more than €100 million in investments in office buildings; and Fidere Patrimonio, with rental flats (of which many are social housing) valued at €300 million.

Beyond these few listed companies, there are dozens of Blackstone companies registered in Spain. And few are less asset-laden, as some combine real estate assets and debt worth several hundred million euros: Tourmalet Propco Investment 2015 manages assets worth €800 million acquired from CaixaBank; Empire Real State Spain, flats acquired from Sabadell worth €500 million; and Patriot Propco, holding debt transferred by Popular at the end of last year, with an initial valuation of €418 million.

Geographical location of Banco Popular’s properties

All these investments will almost be small details when Blackstone takes control of 51% of Popular’s bank bad, with assets worth 30 billion euros. With this, the fund will be able to diversify its portfolio, which is currently highly exposed to Catalonia.

So far, Blackstone has done well with the strategy of betting hard on property while maintaining a low profile. From now on its bet will be double or nothing, and being on the bad end of the bet will be costlier than having remained in the background.

Original Story: voxpopuli – Jorge Zuloaga

Translation: Richard Turner


Testa to Increase Capital by 341 Million Euros to Merge Acciona’s Home Rental Business

08 August 2017

Acciona will integrate its residential assets into Testa in exchange for 21% of the REIT’s capital

The combined company will thus be the first home rental REIT in Spain. The non-cash deal will be approved at the extraordinary shareholders’ meeting convened for next September 14.

The REIT Testa Residencial will increase its capital by €341.19 million to complete the merger of Acciona’s home rental portfolio, a deal agreed to last July, thereby creating the country’s first home rental.

The non-cash deal will be approved in the extraordinary meeting of shareholders that the company has called for next September 14.

Specifically, Acciona will exchange its portfolio of 1,058 rental homes for Testa shares equivalent to 21% of its capital. Acciona will then become the company’s third largest shareholder behind Santander (35.7%) and BBVA (26.9%). Other shareholders include Merlin Properties (12.7%) and, Banco Popular (3.1%).

Testa’s extraordinary shareholders meeting will also include the appointment of new directors to its board of directors, chaired by CEO José Manuel Entrecanales.

The operation will give rise to a new real estate ‘giant’, unprecedented in Spain, since it will create the first home rental company in Spain, coinciding with the growth of the country’s residential rental market.

Once this merger is concluded, Testa Residencial will have a portfolio of 9,041 homes in 118 buildings. More than half of them (51%) are in Madrid.

Testa’s new portfolio, valued at about 1.816 billion euros, will generate gross annual rental revenues in excess of 70 million euros per year.

The operation gives new impetus to the company’s growth strategy, less than a year after its adoption in October 2016.

Second growth operation

Testa Residencial is the result of last year’s merger of Merlin Properties with the equity arm of Metrovacesa, in a deal in which the companies agreed to segregate the housing portfolio into a specific company to be constituted as a REIT.

The current deal, where Acciona’s housing stock will be merged into Testa’s operations is the second major growth operation undertaken by the firm as part of its growth policy, which does not rule out going public.

The first one was concluded at the beginning of this year, when its three shareholder banks (Santander, Popular and BBVA) transferred a portfolio of 3,300 homes to the company, also through a non-cash capital increase.

However, the two transactions resulted in a dilution of Merlin’s initial 46.2% stake in Testa at the time of its incorporation, to the current 12.7%. The transfer of the homes from the banks had already reduced the holdings of the company run by Ismael Clemente to 34.2%, which is centred on office and commercial and logistic centres, and which did not consider the housing segment as strategic.

Original Story: Expansión – EP

Translation: Richard Turner


South African Fund Vukile Acquires 9 Retail Assets For €198M

4 July 2017 – Expansión

A new institutional investor has arrived in Spain. And it comes from an unusual place for large investors in the Spanish real estate market: South Africa.

The South African real estate investment fund (REIT) Vukile Properties has completed its first operation in Spain by purchasing nine commercial assets located all over the country. The South African firm has disbursed €198 million for the properties, which have a combined surface area of 117,700 m2.

Of that amount, €193 million will be paid to the owner until now, the company Redevco Iberian Ventures, a joint venture created in 2015 by the groups Ares and Redevco to invest in the Iberian Peninsula.

Vukile has completed its purchase through the Spanish company Castellana Properties. This company, previously known as Vinemont Investments, changed its corporate structure last summer, to become a Socimi, after completing a capital increase of €12.6 million.

The first properties acquired by this Socimi form part of the portfolio that the Dutch company Redevco has been creating in the Iberian Peninsula over the last few years. The assets include five stores in the Parque Principado de Asturias complex and Parque Oeste, in Alcorcón (Madrid), spanning a surface area of 13,600 m2. The largest property is the Kinepolis complex, in Pulianas (Granada), measuring 25,900 m2 distributed over six stores.

97% of these retail spaces are leased to operators such as Mercadona, Día, Media Markt and fashion labels such as C&A and Kiabi.

For its first operation in Spain (and Europe), the South African REIT, which is listed on the Johannesburg and Namibia stock exchanges, has joined forces with the brothers Lee and Chad Morze, who it defines as “well-known and successful businessman living in Spain”. According to the commercial registry, Chad Morze is the administrator of Diversified Real Estate Asset Management, a company whose primary activity is the provision of tax, audit and accounting advice. Created at the end of 2015, the company has not filed any annual accounts yet. Lee Morze is also registered as an administrator of the same company.

Of the total amount disbursed (€198 million), Vukile has announced that it will contribute own funds amounting to €103 million, whilst the other almost €95 million will be obtained through a bank loan to Castellana Properties from the entities Santander, CaixaBank and Bankia, amongst others.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

AC, Hesperia, Piñero And BlueBay All Plan To Launch Socimis

9 February 2016 – Expansion

Following the success of Barcelo and Bay, more and more chains are in the study of creating a listed vehicle and separate property assets from hotel management to reduce risk and free up resources.

Despite the negative start in the stock markets, 2016 could be the year of hotel Socimis. The alliance between Barceló and Hispania to create the listed investment vehicle “Bay”, together with the interest of investors in the hotel sector in the heat of the tourist boom and the recovery of the Spanish demand, have encouraged BlueBay, AC, Hesperia and Grupo Piñero to launch their own Socimis.

In the case of Blue Bay, the plan is well underway and its Socimi could debut on the floor in the first half with four hotels in the Balearic Islands and one in “Costa del Sol“, and a value of between EUR 150 and 250 million. As Antonio Fernandez, Chairman of Armabex and registered adviser in the operation, “the operation of Barceló and Hispania has made both large chains and small and medium-sized family companies reflect.” 
According to Fernandez, “This is the time of hotels, due to real estate valuations, the liquidity in the market and the type of asset. Since they operate with a lease contract, you can capture some of that value as investment. And he adds: “In the coming years, no properties will be sold, but the SOCIMIs themselves”.

So far, the focus of hotel SOCIMIs has been the holiday segment, taking advantage of the excellent moment in tourism – Spain received more than 68 million foreign visitors in 2015 – and visibility, as the resort hotels have signed contracts of several years with tour operators. Thus, all hotels that Barceló transfered to Bay and with which Bluebay will create its Socimi are spread between the Balearic Islands and Andalusia. 
However, this trend might change in the medium term, with the first purely urban hotel Socimis. Meridia Capital works in this line, which could give the shape of Socimi to its fourth fund. The new vehicle specializes in city hotels, located in Madrid and Barcelona and will combine establishments of several chains. The project of Meridia Capital could open a window of opportunity to Hesperia Investment Group and AC, which are also analyzing the creation of their listed vehicle.

Hesperia, an NH shareholder, tried to sell a batch of six hotels during the crisis and transferring the property it would obtain funds to reduce its debt while maintaining the management of the establishments.

This is one of the great advantages for hotel companies. However, in the case of Meliá, the formula has been discarded because the Socimi forces to sign a lease contract and the Escarrer family´s chain guides its growth strategy via management. Nor is it in NH´s radar, since after progressive output deals in recent years, IT only has 13 owned hotels in Spain – out of a total of 79 – including Eurobuilding Madrid or Calderón Barcelona.

By contrast, it does have the door open to replicate the formula in other countries like Mexico – where the equivalent are the fibers, and Greece, but so far these projects have slowed. Likewise, Room Mate chain led by Enrique Sarasola, is planning to ally with a Socimi – in this case, it does not have owned hotels, but simply manage them, or a Reit – as these types of vehicles are known in the US, to boost their growth. In addition to the tax advantages and the distribution of at least 90% of income in dividends for investors, Socimis are a funding formula and make expansion – Barceló used the funds raised with Bay to purchase “Occidental” – and succession in family businesses easier.

Original story: Expansion (by Yovanna Blanco)

Translation: Aura Ree

The REIT Makes a Profit Of 19.3 Million After a Revaluation Of Its Assets

1 September 2015 – Expansión

In the first semester, the REIT gained 19.35 million euros, after entering 14,12 million coming from the rental of their property and revaluing its asset portfolio by 6%  to 570.9 million, a figure that has increased to 873 million by the end of August. Of the revenue, 61% came from the holiday shopping centers, compared to 22% from the office buildings and 16.5% of logistic assets. Since its going public in March 2014, Lar España has invested 852.6 million. Yesterday, its shares rose 1.56% to 9.10 euros.

Original story: Expansión

Translation: Lee La

Hilton To Double Its Presence In Spain In 3 Years

14 April 2015 – Expansión

Growth / The US hotel giant, which is the second largest chain in the world, operates eleven hotels in Spain and is now backing its own growth in Madrid, Barcelona and Sevilla.

Hilton is redoubling its commitment to Spain. The US hotel giant, which is the second largest chain in the world by size (with 4,115 properties and 678,630 rooms at the end of 2013, according to the ranking published by Hotels magazine) manages nine hotels in Spain (66% through franchise agreements).

In addition, Hilton owns two other hotels, which are due to be incorporated into its network imminently, including the Reserva del Higuerón complex (in Málaga). Hilton will take over the reins there this summer and will thereby return to the Costa del Sol after (an absence of) more than 40 years.

“Our model is based on management; investment is undertaken by a partner, and it has been difficult to finance projects in Spain in recent years, but now the market is starting to open up and we have always been very interested in it”, says Simon Vincent, President of Hilton in EMEA (Europe, Middle East and Africa) and a member of the chain’s Board of Directors.

“The market in Spain is very fragmented, but we believe that opportunities exist for refurbish existing hotels and incorporating them into our network; furthermore prices are beginning to recover”, he adds.

In terms of the numbers, Vincent’s objectives are clear: “Doubling our size in Spain in two or three years would not be unreasonable, since that is what we have done in Turkey”. In Europe alone, Hilton operates 353 establishments and will incorporate a further 447 hotels (into its network) over the next three years. Barcelona and Sevilla are both on its priority list, but its primary focus in Spain will be on Madrid. “We were the first international brand (in Madrid), when we opened the Madrid Castellana Hilton in 1953 (today the Intercontinental) and the capital city is a high priority for the group and all of its brands”, he says.

At this stage, a priori, Hilton has ruled out forming an alliance with a local partner to accelerate its growth, like Marriott did with AC Hoteles in 2010.

Market consolidation

Vincent is very familiar with the travel sector; he has two decades of experience working for groups such as Opodo – today part of the eDreams Odigeo group – and Thomas Cook. He considers that if Spain lacks a large hotel group of its own, then “that is because the market is regional with strong (local) brands, which is precisely one of its strengths”. Nevertheless, “over time, there will be consolidation in the industry and the tour operators will want to participate and control the experience they offer their customers”.

In terms of the emergence of Socimis (Sociedades Anónimas Cotizadas de Inversión Inmobiliaria or Listed Real Estate Investment Companies), which are similar to REITs in the USA, the executive belives that “they may help to professionalise the sector, because that is how the funds that invest in hotels work”.

In his opinion, “the key (to success) in the hotel sector is size at the global level. For Hilton, the most important objective is not to have a presence in as many countries as possible, but rather to bring the greatest number of customers as possible to those countries through our (its own) system”. This is demonstrated by its loyalty program, which has more than 40 million users.

With 12 brands, Vincent argues that Hilton’s success is “based on our ability to convert revenues into profitability and growth, because our brands are in very high demand”. Thus, 19% of the hotels that the chain will open around the world over the next few years will bear one of the Hilton’s own brands. Nevertheless, the door is open to new brands as well. “We think that there is still space (in the market)”.

Over the medium term, Hilton’s route map includes increasing its scale and enhancing its geographical diversification and the appeal of its brands, as well as promoting the digitalisation of its content, and expanding its distribution channels.

Hilton recorded revenues of (US)$10,502 million and profits of (US)$673 million in 2014 and predicts further growth again this year, both at the operational level, as well as in terms of its share price, which is currently trading at $30.38/share. According to Vincent, “we are very happy with our IPO, the foundations of our business are solid and the market acknowledges that”.

Original story: Expansión (by Yovanna Blanco)

Translation: Carmel Drake

Socimis Come To The Hotel Sector’s Rescue

17 March 2015 – Expansión

Trend / Listed real estate investment companies (REITs or Socimis) are paving the way for (hotel) groups to separate the management and ownership of properties – the vehicles provide significant tax advantages and boost the professionalism of the industry.

Socimis – ‘socidedades cotizadas de inversion inmobiliaria’ or listed real estate investment companies – are playing an increasingly important role in the hotel sector due to the tax benefits they offer and also because they allow (hotel) chains to separate the ownership of their properties from the management of the facilities, in line with the Anglo-Saxon model.

These types of vehicle, which are used to purchase and refurbish assets for rental, must invest at least 80% of their funds in property and pay out at least 90% of their rental income (from said properties) in the form of dividends. They also have a special tax regime.

To publicise this alternative funding formula, the Mallorcan Hotel Business Federation (‘Federación Empresarial Hotelera de Mallorca’ or FEHM), Armabex Asesores Registrados and Garrigues have organised a seminar entitled “Socimis as an instrument for restructuring the real estate property of hotel groups”, which will be held today in Mallorca. At the event, the tax advantages of this investment vehicle will be analysed, together with their legal status and the process for incorporating Socimis into the Alternative Investment Market (Mercado Alternativo Bursátil or MAB), amongst other considerations.

The purpose is to raise awareness amongst (hotel) chains and professionals in the real estate sector of the importance of ensuring that the management of hotels and the ownership of the property are in different hands; this is the biggest challenge facing the industry. We will also analyse in more detail the value that Socimis have as a tool for reducing risk, being more competitive and efficient and also their tax advantages”, says Inmaculada Benito, Executive Vice-President of the FEHM.

Antonio Fernández, Chairman of Armabex Asesores Registrados, stresses that “the restructuring of real estate capital in the sector has been triggered by the lack of financing, the decrease in prices and the existence of an appropriate legal and fiscal framework”. On that last point, Fernández highlights that “investors may now own properties without having to manage them and hotel groups can continue with their management without having to be owners”.

José Manuel Cardona, partner at Garrigues, says that “Socimis are a tool that help to address many of the challenges facing the hotel sector in a single solution”. In his opinion, “they not only represent a funding formula; they also facilitate expansion and internationalisation, provide a solution to the problem of succession in family businesses and pave the way for integration between larger groups and small chains”. Furthermore, “they encourage greater transparency and control, the professionalization of management teams and carry the requirement to distribute minimum dividends, which results in more objective valuations of the assets and rents”.

First case

Barceló was the first company to adopt this formula, through its alliance with Hispania. Bay, the first hotel-sector Socimi, was created with 16 hotels and two shopping centres, worth €421 million. Experts believe that it will not be the only one and that there will soon be more hotel Socimis, that will own both holiday and urban hotel properties. “2014 was the year for shopping centres (in the real estate sector) and this year, hotels will be the leading players”, predicts Fernández.

Original story: Expansión (by Yvonna Blanco)

Translation: Carmel Drake