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

Spain’s Government to Overhaul Regulations Governing Socimis

3 January 2020 The two parties in Spain’s governing coalition, PSOE and Unidas Podemos, have reached an agreement to overhaul the legal and tax frameworks that regulate socimis in the country. The principal effect will be to implement a 15% tax on retained earnings.

The government will also seek to implement measures to contain what it sees as abusive increases in rental prices in specific areas of the country. Spain’s autonomous regions and municipalities will henceforth have the power to impose ceilings on price increases based on an objective methodology, which will be determined at a later date.

The two parties also agreed to establish a legal framework to create a database of vacant housing and major property holders. Local governments will be able to use the information to induce such holders to put their properties on the rental market to relieve demand pressure.

Los dos partidos en la coalición gobernante de España, PSOE y Unidas Podemos, han llegado a un acuerdo para revisar el régimen jurídico y fiscal que regula a los socimis en el país. El efecto principal será implementar un impuesto del 15% sobre los beneficios no distribuidos.

El gobierno también buscará implementar medidas para contener lo que ve como aumentos abusivos en los precios de alquiler en áreas específicas del país. Las regiones autónomos y municipios de España tendrán en adelante el poder de imponer límites a los aumentos de precios basados en una metodología objetiva, que se determinará en una fecha posterior.

Las dos partes también acordaron establecer un régimen legal para crear una base de datos de viviendas vacantes y los principales propietarios en el país. Los gobiernos locales podrán utilizar la información para inducir a dichos titulares a poner sus propiedades en el mercado de alquiler para aliviar la presión de la demanda.

Original Story: Eje Prime

Translation/Summary: Richard D. Turner

Millenium to Undertake €400 Million in Capital Increases

3 January 2020 Shareholders of the hotel investment socimi Millenium have approved two new capital increases of up to 400 million euros. The socimi will undertake the increases within the coming year, according to a statement the socimi submitted to the Alternative Stock Market (MAB).

Los accionistas de la socimi de inversión hotelera Millennium han aprobado dos nuevos aumentos de capital de hasta 400 millones de euros. La socimi emprenderá los aumentos dentro del próximo año, según un comunicado que la socimi presentó al Mercado de Valores Alternativos (MAB).

Original Story: Eje Prime

Translation/Summary: Richard D. Turner

Colonial to Issue Up to €5 Billion in New Debt

3 January 2020 The socimi Colonial has communicated its intention to issue up to €5 billion in new bonds to Spain’s National Securities Market Commission (CNMV). The new issue is part of the firm’s strategy to complement its bank financing.

Colonial, which primarily invests in offices for lease had net debts of €4.522 billion as of September of last year. The socimi last issued bonds in November 2017 and April 2018 to finance its takeover bid and subsequent merger with Axiare.

The firm is currently analysing a series of possible new acquisitions, adding to its portfolio of office buildings in Madrid, Barcelona and Paris. The existing portfolio is valued at 11.8 billion euros.

La socimi Colonial ha comunicado su intención de emitir hasta 5.000 millones de euros en nuevos bonos a la Comisión Nacional del Mercado de Valores (CNMV) de España. El nuevo emisión es parte de la estrategia de la empresa para complementar su financiamiento bancario.

Colonial, que invierte principalmente en oficinas para arrendar, tenía deudas netas de 4.522 millones de euros in septiembre de 2019. La socimi emitió bonos por última vez en noviembre de 2017 y abril de 2018 para financiar su oferta de adquisición y posterior fusión con Axiare.

Actualmente, la firma está analizando una serie de posibles nuevas adquisiciones, que se sumarian a su cartera de edificios de oficinas en Madrid, Barcelona y París. La cartera existente está valorada en 11.800 millones de euros.

Original Story: Europa Press

Translation/Summary: Richard D. Turner

Euronext Access Vies With MAB for Socimis

11 December 2019 – Euronext Access is increasingly competing for listings of socimis with Spain’s Alternative Market (MAB). The stock exchange is comparable to the MAB in that it is aimed at companies with smaller capitalisations. Euronext, however, has the added benefit of lower costs and requirements.

Those benefits, together with Euronext’s pan-European reach (with a presence in Belgium, France, Ireland, the Netherlands, Portugal, Norway and the United Kingdom), are leading a growing number of socimis to opt for a listing in Paris instead of in Madrid.

Armabex, a specialist firm in placing socimis in the MAB, is currently working with ten firms looking to debut on the French stock market in 2020. The president of the firm predicts that 20 or 25 Spanish socimis will opt for a listing on Euronext next year. If that turns out to be true, it would be a major blow to the MAB.

Since 2013, ninety-one socimis have listed in Spain, and seven of those are already trading on Euronext Access.

Original Story: El Confidencial – Ruth Ugalde

Photo: Reuters

Adaptation/Translation: Richard D. K. Turner

Park Rose Iberoamericana Finalises €2.2-Million Capital Increase

16 December 2019 – Park Rose Iberoamericana, a company specialised in the acquisition and development of urban rental properties, completed a €2.2-million convertible loan share capital increase. The new securities have a nominal value of one euro.

The socimi debuted with a capitalisation of 10.8 million euros and a portfolio made up of eleven commercial assets and two offices located in Barcelona, Toledo and Madrid.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Growth of Socimis Expected to Fall by Half in 2020 from High in 2019

2 December 2019 – The director of Business Development at Gesvalt, Luis Martín Guiraldo, believes that approximately 19 new socimis will be created in 2019, up from 15 last year. That figure, however, is expected to fall by half in 2020.

The future of the investment vehicle has become somewhat less certain with the formation of a left-leaning government coalition by the PSOE and Podemos political parties. In his report, Mr Guiraldo notes how concentrated investments by socimis are in Madrid and  Barcelona, with only two listed socimis based in other cities (Valencia and Marbella). Total investments follow a similar pattern, with small groups of foreign investors behind the majority of the firms. Government regulators are now expected to take a closer look at the market, dampening the enthusiasm for the sector.

Original Story: Idealista – Carlos Lospitao

Adaptation/Translation: Richard D. K. Turner

Mercal Inmeubles Sells Two Stores in Madrid for €1.7 Million

2 December 2019 – Mercal Inmuebles has finalised its first sale of assets, selling two commercial premises in Madrid for 1.7 million euros. The two conjoined properties are located at Calle Guzmán el Bueno 16, on the ground floor and mezzanine levels of the building.

According to Ibertasa, the stores were valued at approximately 972,000 euros just last year, up from 903,000 euros in 2013. The assets together have 307 m2 and are currently leased to Bankia. Mercal had already had the assets in its portfolio for a decade.

Original Story: Idealista – David Martínez

Adaptation/Translation: Richard D. K. Turner

Domo to Give Up Socimi Status After Change in Spanish Rental Law

21 November 2019 – Domo will exit the socimi tax regime and, along with it, its business of developing rental housing due to changes in Spanish regulations. The country approved a law this year where rental agreements would be extended from three to five years, and up to seven years in cases where the owner is a corporate entity.

The firm argued that the change in the law would negatively affect its operations, as its strategy included selling the properties it built within four to six years. Domo added that the new regulations would impact its financing arrangements and decrease its potential profitability.

Nevertheless, Domo expects to maintain its listing on the MAB.

Original Story: La Vanguardia

Adaptation/Translation: Richard D. K. Turner

The Quesada Family of Málaga to List Maq Administración Urbanas Socimi on Euronext París

19 November 2019 – The Quesada family, which owns a series of properties on Calle Larios de Málaga, the principal commercial artery of the provincial capital city, has incorporated a socimi that is preparing for a listing on the Euronext Paris. The socimi Maq Administración Urbanas, which owns three buildings, is worth 47.9 million euros, according to the IPO.

The properties are located at the streets Marqués de Larios 5, Salvago 2 and Alameda 11 and are all fully leased.

Original Story: ABC de Sevilla – María Jesús Pereira

Adaptation/Translation: Richard D. K. Turner