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

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

Colonial Profits Soar by 40% Due to Asset Rotation Strategy and Increased Rents

8 November 2019 – Colonial posted a taxable net profit of 393 million euros in the first nine months of the year, an increase of 40% y-o-y. The firm stated that revenues went up because of its policy of asset rotation and growth in office rental prices, principally in Madrid and Barcelona.

The socimi reported that new office lease contracts this year reflect an 8% increase in prices, compared to the end of 2018. Contract renewals in the third quarter saw increases of up to 36% in Madrid and 24% in Barcelona.

Original Story: Expansión

Adaptation/Translation: Richard D. K. Turner

Merlin Properties Extends €129-Million Loan to San José

6 November 2019 – Merlin Properties has extended a €129.10 million loan to the San José construction group, part of a recent transaction which saw the Spanish socimi acquire a 14.4% stake in Operation Chamartín. The socimi agreed to pay €168 million as well as grant the loan to San José.

The loan is structured into two tranches, the first, worth 86.39 million euros, has a 20-year maturity and an interest rate of 2%.

The second, €42.72-million tranche, also pays 2%. Merlin structured the loan as a cash deposit to guarantee working capital financing that San José has until October 31. The second tranche will mature on December 2.

Original Story: Expansión

Adaptation/Translation: Richard D. K. Turner

Meridia to Sell a Major Portfolio of Office Buildings in Madrid and Barcelona

31 October 2019 – Meridia is selling the largest portfolio of office buildings currently on the market. The portfolio, known as Project Square, is made up of a dozen real estate assets in Madrid and Barcelona. The sale of assets from the socimi Meridia III could be worth up to 200 million euros.

The assets in Madrid include the Omega Building in Alcobendas; three buildings on Calle Julián Camarillo, and the Virgilio II building in Pozuelo de Alarcón.

In Barcelona, ​​the portfolio consists of the Citypark in Cornellá; two office buildings in Viladecans; the Diagonal Business Park in Esplugues de Llobregat, and another asset at Paseo de San Joan 75.

In total, the portfolio has around 80,000 square meters of surface area, with approximately 1,200 parking spaces.

Original Story: Cinco Días – Alfonso Simón Ruiz

Adaptation/Translation: Richard D. K. Turner

Corpfin Capital Prime Retail II and Corpfin Capital Retail III Post Strong Gains

30 October 2019 Corpfin Capital Prime Retail II and Corpfin Capital Retail III both posted strong performances in the first semester of 2019. The former took in receipts of €4.5 million, ten times the amount one year before. Corpfin Capital Retail III had profits of three million euros, once again, ten times more than in 2018.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Grupo Lar to Create New Investment Vehicle With €1 Billion in AUMs

24 October 2019 – The developer Grupo Lar is studying whether to incorporate a new socimi for its rental housing business. The new investment vehicle would have more than €1 billion in assets, including more than 5,000 homes. Yesterday, Grupo Lar announced that it would start work on a project to build 66 rental homes in Valladolid, in an initial investment of nine million euros.

The development is part of the firm’s initial strategic plan to build 500 rental homes. Grupo Lar also has two other projects under development in Parla and Móstoles.

The company is studying the best investment structure for the new vehicle, potentially creating a new socimi.

Original Story: Cinco Días – Alfonso Simón Ruiz

Adaptation/Translation: Richard D. K. Turner