Tag: requirements

Mazabi’s Socimi Silicius Acquires an Office Building on c/Velázquez (Madrid)

21 May 2018 – Press Release

Silicius Inmuebles en Rentabilidad, the Socimi managed by Mazabi, has purchased an office building in the heart of Madrid’s CBD, on Calle Velázquez, 123.

The property, which has been renovated recently, meets the requirements of the investment policy established by the shareholders and represents another step in the Socimi’s growth phase, ahead of its debut on the stock market. The acquisition has been conducted entirely using own funds.

In the heart of Madrid’s CBD, the property has an above ground gross leasable area (GLA) of 2,346 m2 (offices and a commercial premise) plus 30 parking spaces. Currently, the 1st, 2nd and 3rd floors are available for rent; they are completely open plan and have a surface area of 300 m2 each. This is a highly visible property thanks to its location at the junctions of Calles Velázquez and María de Molina, and the floors enjoy lots of light (with 15 windows per floor). The property is currently in the pre-certification phase of obtaining a sustainability stamp.

This is a firm step forward for the Socimi as it advances its growth phase. The company, which specialises in long-term rental assets, is continuing its growth phase with the acquisition and contribution of new assets to its existing portfolio, following its policy to invest in diversified assets that generate stable rental income.

The Director-General of Silicius, Juan Diaz de Bustamante, said that “the purchase of this asset is a good example of the ideal asset for our portfolio, given that it meets the necessary requirements set out in our principles: to back conservative investments over the long term, as well as to ensure diversification and asset liquidity in order to pay an annual dividend to shareholders”.

With a very defined investment policy, Silicius is currently evaluating the purchase or contribution of properties worth approximately €500 million (commercial premises, out-of-town stores, shopping centres, office and hotels in Spain). The volume of investment/contribution per property amounts to between €5 million and €30 million.

Currently, Silicus owns assets worth €120 million, which generate annual rental income of approximately €6 million. The company’s assets include several commercial premises in “prime” locations with long-term tenants (Paseo de la Castellana, Velázquez, Blanca de Navarra and Paseo de Yeserías), a multi-tenant office building on c/Virgen de los Peligros (in the historical centre of Madrid), an office building on Calle Obenque, 4 in Madrid (with a façade overlooking the A-2) and a hotel with a long-term lease in Conil de la Frontera (Cádiz).

Silicius is a Socimi, managed by Mazabi, specialising in the purchase and active management of profitable assets that generate stable rental income over the long term for investors, providing them with an annual dividend (…).

Original story: Press Release

Translation: Carmel Drake

MAB’s 31 Socimis Must Prove Their S/H Liquidity By Friday

8 March 2017 – Invertia

The deadline that the Alternative Investment Market set for Socimis to demonstrate greater liquidity in terms of their share capital, is looming. By Friday, at least €2 million of the respective share capital of those entities must be held by minority shareholders in each case. Any Socimi that fails to comply with this requirement will be expelled from the alternative stock market.

Last year, the Alternative Investment Market (MAB) produced a circular, which, amongst other things, sought to increase the liquidity of the shares of its Listed Real Estate Investment Companies (Socimis). The Socimis represent a very important segment in this small MAB market, but the negotiation of their shares stands out for all the wrong reasons – due to its absence. Having said that, it should be noted that the large Socimis, which are listed on the continuous stock market – including the one company that trades on the exclusive Ibex, namely Merlin – do have more than acceptable movements in their shares.

In this way, a significant difference is being established between the 31 Socimis whose shares are traded on the MAB and the four whose stocks are listed on the continuous market. In addition to Merlin, the group of Socimis whose shares are actively traded comprises: Axiare, Lar and Hispania.

Friday represents the deadline for all of the Socimis to comply with the minimum capital distribution requirements, whose aim is to generate more liquidity (…).

Article 3.2 of the MAB’s circular states that: “In the case of Socimis, for the shares of such a company to be traded on the MAB, a minimum number of those shares must be owned by shareholders that hold less than 5% of the company’s share capital, and that minimum number must comply with either one of the following magnitudes:

– An estimated market value of €2 million.

– 25% of the shares issued by the company.

The calculation above will include shares placed at the disposal of the liquidity provider to perform this function. The effective diffusion of those shares should happen within a maximum period of one year following their incorporation onto the MAB”.

The MAB established a period of one year for the Socimis to adapt to this shareholder composition requirement. In other words, Socimis that were operational on 9 March 2016 and before, must comply now (by Friday) and those that have joined since that date will have one year to comply following their incorporation onto the market.

The Socimi Paradox

Socimis first emerged in 2013, boosted by a very favourable tax treatment of 0% in terms of Corporation Tax. The reason, according to the experts, was to revive the real estate market that attracted so many overseas investors to Spain in search of bargains that the real estate crisis had left behind.

In this way, the Government was trying to strengthen the real estate investments of large families with a very advantageous tax vehicle. (…).

Nevertheless, most of the Socimis are owned by wealthy families and companies owned by very few people, which are achieving remarkable savings in terms of Corporation Tax. This means that in many cases, it does not make sense to sell shares in these Socimis given that their founding owners do not want to offload those shares. Nevertheless, the entities are required to be publicly listed with the aim of ensuring that company information is generally available. The act of listing forces these companies to be more transparent in terms of information.

However, Friday’s deadline for the MAB’s circular could force some of the Socimis out on the street and therefore, losing their tax benefits. (…).

Original story: Invertia

Translation: Carmel Drake

Asturias Retail & Leisure Socimi Will Debut On The MAB On Friday

29 June 2016 – Telecinco

The company Asturias Retail and Leisure Socimi will debut on the Alternative Investment Market (MAB) on Friday 1 July, after it received the green light from the MAB’s Coordination and Incorporations Committee, which has confirmed that it fulfils all of the necessary requirements for listing.

Using the valuation report prepared by the independent expert Ernst & Young Servicios Corporatives, the company’s Board of Directors has set a reference value of €19.15 for each one of its share, which values the company at €95.8 million.

The debut of the company, which will become the eighteenth Socimi to join the MAB, still requires prior approval from the MAB’s Board of Directors.

The company’s trading code will be YAST and its shares will be traded through the price fixing system. Renta 4 Corporate is the company’s registered advisor, whilst Renta 4 Sociedad de Valores is acting as its liquidity provider.

Asturias Retail and Leisure Socimi owns three properties in Oviedo, through two subsidiaries: the shopping centre known as Intu Asturias and seven retail premises, a hypermarket leased to Eroski and a service station.

Original story: Telecinco

Translation: Carmel Drake