Spain’s Socimis More than Double their Market Capitalisation in 3 Years

9 January 2020 – Expansión

Altogether Spain’s Socimis have a market capitalisation of €28 billion, having seen their value on the stock market soar by 60% in 3 years, according to a report compiled by Gloval Building Value.

The two largest Socimis, Merlin and Colonial, which are both listed on the Ibex, account for more than 40% of that total, with a combined market capitalisation of €12 billion and asset portfolios of €12.4 billion and €11.8 billion, respectively. They are followed by General de Galerías Comerciales (GGC), with a market capitalisation of €3.7 billion; GMP (€1.1 billion); Testa (€850 million) and Castellana Property (€600 million). The latter four all trade on the Alternative Investment Market (MAB).

The specialist real estate companies (Socimis) first began to take off in Spain in 2012 following a legislative change that afforded their shareholders tax benefits. In the last 7 years, more than 80 Socimis have joined the MAB and more still are expected to make their debuts over the coming years.

Just two of the major Socimis have disappeared in that time: Hispania, which was acquired by Blackstone and merged with HI Partners; and Axiare, which was absorbed by Colonial in 2018. Finally, four smaller Socimis have been excluded from trading (Bay, Kingbook, Colón and Autonomy) and one (Promorent) has transferred to the Expanding Companies segment.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Neinor Reports Profits of €90M, Exceeding its Own Forecast by 30%

9 January 2020 – El Confidencial

Nine months after issuing a profit warning, announcing a new roadmap and appointing a new CEO (Borja García-Egotxeaga (pictured below)), Neinor has reported profits of €90 million, up by 30% compared to the revised forecasts of €70 million.

The property developer handed over 1,269 finished homes last year, within its forecast range of between 1,200 and 1,700, and has another 200 ready to hand over this year. It plans to hand over half of those this month (January) and the rest during the course of the year, depending on its margins.

2020 is going to be a critical year given the looming change in the economic cycle, with stabilisation expected in terms of sales and prices. In 2018, prices rose by 8%; in 2019, they increased by 6-7%; and in 2020, the firm’s objective is to sell 1,700 homes and achieve a price increase of 3.5-4%. Thanks to these rises, the group’s margin amounted to 30% at the end of 2019.

By contrast, Neinor has not managed to fulfil its land purchase plan to date, although it expects to achieve its ambitious forecasts for 2020 when it aims to invest €110 million in total.

The property developer’s two largest shareholders, Orion (28%) and Adar are both keen to support the growth of the company and benefit from the consequent recovery of its share price.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Advero Properties Receives Green Light for Stock Market Listing on Spain’s MAB

8 November 2019 – Advero Properties has been approved for its stock market debut by the Alternative Stock Market (MAB). The firm’s board of directors set an initial share price of 6.5 euros, valuing Advero at 10.6 million euros.

The firm will trade under ‘YADV’. Solventis is the registered advisor of the company and will also act as a liquidity provider.

Original Story: La Vanguardia

Adaptation/Translation: Richard D. K. Turner

Neinor’s Share Price Drops by 16% As the Market Reacts to its New Strategic Plan

9 April 2019 – La Vanguardia

The share price of Neinor Homes decreased by more than 16.3% after the change in CEO and a new more conservative strategic plan was announced on Monday.

As such, Neinor’s share price has plummeted by more than 30% since the start of the year and is currently trading at around €9 per share.

The company has appointed Borja García-Egotxeaga as its new CEO, following the resignation of Juan Velayos, who will continue as a senior advisor to the property developer.

Original story: La Vanguardia

Translation/Summary: Carmel Drake

Blackstone’s Hotel Socimi Hispania Ceases Trading on the Stock Market

4 April 2019 – La Vanguardia

Hispania, the largest hotel owner in the country, will stop trading on the stock market from tomorrow Friday 5 April. This outcome has been on the cards since the Socimi, which owns 46 hotels located all over Spain, was taken over by the US fund Blackstone last year.

Blackstone paid €18.25 per share for the Socimi, compared with the firm’s debut price of €10.00. On Thursday, Hispania closed trading at €17.82 per share.

The Socimi, which is worth almost €2 billion, will abandon the stock market five years after making its debut in March 2014. It is the first Socimi to have trading in its shares terminated in this way.

Original story: La Vanguardia 

Translation/Summary: Carmel Drake

Socimi Almagro to Increase its Capital to Buy New Assets in Madrid

27 March 2019 – La Vanguardia

The Socimi Almagro Capital, which specialises in residential properties for the elderly, has approved a €15 million capital increase to finance new acquisitions and consolidate its growth in the Spanish capital.

Almagro Capital, which is managed by the Spanish firm Ofila Management, owns 24 assets in the centre of Madrid, located in the Chamartín, Goya, Chamberí, Princesa, Chopera, Lavapiés, Recoletos, Palacio, Salamanca, Viso, Chueca, Retiro and Tetuán areas.

The Socimi made its debut on the MAB in January, with an initial share price of €1.07, which represented a company valuation of €10 million. That figure is set to rise to around €50 million over the short to medium term.

Original story: La Vanguardia 

Translation/Summary: Carmel Drake

General de Galerías Comerciales Buys ‘Las Terrazas’ Shopping Centre for €42M

22 March 2019 – Europa Press

The Socimi General de Galerías Comerciales has purchased Las Terrazas shopping centre in Telde, Gran Canaria for €42 million. The asset has a total constructed surface area of 121,461 m2, as well as a plot measuring 22,045 m2.

The portfolio of the Socimi, which is listed on the MAB, now contains seven shopping centres, including five properties in Andalucía and one in Cataluña.

The Socimi currently has a share price of €107, up by 35.4% since its debut price of €79, taking its market capitalisation to around €2.8 billion.

Original story: Europa Press

Translation/Summary: Carmel Drake

Merlin’s Revenues Rose by 5.2% to €509M in 2018

1 March 2019 – Expansión

The Socimi Merlin Properties closed 2018 with an increase in revenues thanks to the strong performance of its rental properties. Its total turnover amounted to €509 million, up by 5.2%, boosted by a 6.5% improvement in gross sales to €500 million. The real estate company’s EBITDA reached €403 million, up by 2.8%. The operating result fell by 22% to €855 million.

The company’s main source of income is the rental from its office buildings, followed by its shopping centres. The value of the Socimi’s assets amounted to €12.0 billion at the end of December 2018, which represented a YoY increase of 6.1%. The occupancy rate of its property portfolio rose to 93.4%.

Yesterday, the company highlighted the cost control of its financial debt, which amounted to €4.9 billion with an indebtedness ratio of just over 40% and financial costs that have reduced to 2.13% following the most recent refinancings.

The company has a cash balance of €350 million (…). In 2018, Merlin undertook investments amounting to €569 million and property sales amounting to €594 million, with a premium for its divestments of 3.1% (…).

Merlin’s share price closed trading at €11.10 per share yesterday, down by 1.2%.

Original story: Expansión

Translation: Carmel Drake

Retail Socimi Única’s Profit Soared by 42% in 2018

26 February 2019 – Eje Prime

Única Real Estate is on a roll. The Socimi, which specialises in retail premises, has presented its results for 2018, revealing 42% higher earnings than a year earlier. Specifically, the company recorded a profit of €495,498, compared to €348,060 in 2017.

In parallel, Única generated revenues of €19.7 million, which translates into growth of 49% compared to its turnover a year earlier. The company’s operating result amounted to €858,105 in 2018, up by 45.6% compared to a year earlier.

The Socimi also reported that its real estate portfolio ended the year with a market value of €44.8 million, according to a valuation carried out by Savills Consultores Inmobiliarios. In total, Única has 36 commercial premises, spanning 8,655 m2 (…).

Looking ahead, Única’s forecasts involve executing the corporate operation in which it has been immersed since the end of 2018, and which involves the purchase of 100% of the company’s shares by Vitruvio Real Estate Socimi (…).

Única completed its stock market debut in 2018, and started trading on the Alternative Investment Market (MAB) on 27 June. The Socimi ended the year with a market capitalisation of €30.5 million and a share price of €26.60, up by 1.6% compared to its debut.

Original story: Eje Prime 

Translation: Carmel Drake

Vitruvio to Complete a €14.5M Capital Increase Ahead of its Takeover of Única

5 February 2019 – Eje Prime

Vitruvio is preparing to launch its takeover bid for Única. The Socimi is planning to complete a €14.5 million capital increase to finance the operation, which will be complemented by the exchange of shares plus available cash from the company.

In addition, the company has now completed the two due diligence processes on the Madrilenian Socimi – specifically, the technical and legal due diligences, and both of them have proved positive. “That was the last step that needed to be completed before submitting the offer to the reference shareholders of Única, which is extendable to all of the shareholders”, explained sources at Vitruvio speaking to Eje Prime.

Vitruvio is planning to close the operation for around €32 million. After adding €45 million in properties from Única, the group will be managing a portfolio of rental assets worth €160 million.

According to explanations provided by the Socimi in a statement sent to the Alternative Investment Market (MAB), the capital increase will finance part of the acquisition, fulfil the maximum indebtedness limit of 33% and make way for the entry of new investors.

The rest of the operation will be paid for with €8.1 million of available cash as well as financing available to Vitruvio for the purchase, and another €9.7 million, which will be paid for with shares representing 30% of Única.

The capital increase will be proposed at the next shareholders meeting in March at a price of €14.50 per share. “Vitruvio will propose the capital increase at the latest NAV per share, whereby avoiding any dilution of the shareholders”, explained the company.

Única Real Estate was founded in 2015 by the former CEO of Metrovacesa, Eduardo Paraja, and specialises in the acquisition and leasing of commercial premises in the Community of Madrid.

Vitruvio, meanwhile, has a diversified portfolio comprising offices, homes and commercial premises. Together, the two companies own 71 properties, and generate revenues and EBITDA of €9.3 million and €6.3 million, respectively.

Original story: Eje Prime (by I. P. Gestal)

Translation: Carmel Drake