Tag: stock exchange

MAB Introduces Tougher Entry Rules For New Socimis

31 July 2017 – Expansión

In August, an amendment to the regulations governing the Alternative Investment Market will enter into force, which has led to a wave of Socimi debuts on the stock market in July to circumvent the new requirements.

Six new Socimis debuted on the stock market in July, an unusually high level of activity compared to previous months. The reason is that on 1 August the new circular published by the Alternative Investment Market (MAB) will enter into force. It introduces changes for debuting on the stock market and will affect all companies wanting to list from next month (August) onwards, in particular, Socimis. The amendment sees a toughening up of the conditions to debut on the stock market, given that it imposes some very demanding requirements for minority shareholders.

The change is very specific: “At the time of listing, companies must have minority investors owning shares that are worth less than €2 million or 25% of the company’s share capital”, explained José Luis Palao, Partner of the Mercantile Department at Garrigues. Minority shareholders are considered to be those that hold less than 5% of the share capital. Until now, the regulations allowed companies a grace period of one year to fulfil this requirement.

Manuel López, Partner of Financial Regulatory Law at Ashurst, considers that some Socimis have formed closed-end funds of sorts that have no interest in allowing access to minority shareholders. The exception to the regulations that existed benefitted this type of company in particular, as they enjoyed additional time to adapt themselves.

In this sense, López understands that the regulations are reasonable and reflect what the Socimis are designed to be – entities with the vocation to expand and attract new investors, aimed at boosting the real estate sector. His colleague, Ismael Fernández Antón, Partner of Real Estate Law at the same firm, considers that “the legislation has not become less flexible, but rather more coherent”.

Although Circular 1/2017 does not explain the reasons for the change, the experts agree that the market for Socimis has reached maturity and does not require any further encouragement. The MAB was prudent at the beginning, offering these companies a certain amount of freedom to promote their growth. Fernández Antón says that “this measure was always going to have a sell-by date”, given that the Socimis already represent an attractive vehicle for real estate investment in Spain. Moreover, the modification represents a guarantee to “limit the desire to use them as a platform for pure fiscal optimisation”, says López.

The change only affects companies that start trading from August, in such a way that those that have debuted recently still benefit from the exception. This has meant that, in the last month, the rate of Socimi debuts on the stock market has multiplied. Those who have acted quickly can enjoy a period of one year to fulfil this requirement regarding the diffusion of shareholders.

Although almost 40 Socimis trade on the stock market, only five are listed on the Main Exchange and only two of those form part of the Ibex 35: Merlin Properties and Colonial. Within the last few days, the entities Numulae, Bay Hotels & Leisure and AM Locales have all debuted on the MAB.

Original story: Expansión (by Jesús de las Casas)

Translation: Carmel Drake

Eurosic Debuts Its Socimi On The MAB With Tourist Assets Worth €137M

21 June 2017 – Expansión

The French real estate company Eurosic is looking to finalise the stock exchange debut of its company in Spain. The firm, which trades in France under the Siic framework (similar to the Spanish Socimi system) has been investing in Spain for a year and a half now, during which time it has accumulated 11 assets, whose combined acquisition price amounts to €137 million.

Specifically, Eurosic undertook its first operations outside of France in 2015, with the purchase of a property in Germany and another three in Spain. In December 2015, the French group acquired a hotel in Fuengirola (Málaga), an estate spanning more than 12,600 m2 in l’Estartit (Gerona) and another building, requiring renovation, on Calle Bailén in Madrid. According to the most recent accounts filed for Eurosic Investment Spain Socimi, the French group spent €35 million on those three properties.

Months later, the vehicle acquired two hotels in Sóller (Mallorca) and another building on Calle Atocha in Madrid.

After closing these operations, the Socimi now has a portfolio specialising in tourist assets (hotels and apartments), worth €137 million. Its objective is to increase its investment to €280 million by the end of 2017 when Eurosic plans to debut its investment vehicle on the MAB.

The Socimi currently has share capital amounting to €96 million, of which Eurosic has contributed €70 million; the firms Euler Hermes and Allianz Invest Pierre (managed by Immovalor Gestión) have invested €25 million of their own funds; and the management team has contributed €1 million.

According to the accounts for the most recent fiscal year, closed March 2016, Eurosic Spain recorded rental income of €452,616. In January, the Socimi undertook a capital increase amounting to €1.57 million, to make way for the entry into the share capital of a fund in which Allianz holds a stake, according to market sources.

In 2014, the French group purchased Colonial and Realia’s stakes in the French real estate company Siic de Paris for €850 million. In February, it invested €116 million in Spain, acquiring 16 nursing homes, as reported by Expansión.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

UniCredit Sells €17,700M In Doubtful Loans To Pimco & Fortress

15 December 2016 – Expansión

The Italian bank has €360,000 million of doubtful loans on its balance sheet.

UniCredit, the largest bank in Italy, has taken its first major step in the long awaited clean up of the transalpine financial sector, with the sale of €17,700 million in doubtful loans to Pimco and the Fortress Investment Group. Experts believe that Italy’s other financial institutions will find it harder than UniCredit to clean up their balance sheets.

Massimo Famularo, analyst at Frontis, considers that “UniCredit is playing in a league of its own and its capacity to absorb losses is enormous compared with that of the smaller Italian banks”, reported the Bloomberg news agency.

The sale of doubtful loans forms part of UniCredit’s new strategic plan, which also includes a €13,000 million capital increase and the cutting of 14,000 jobs. “The inclusion of Pimco and Fortress in the sale agreement for the doubtful loans gives credibility in the market and encourages other players to make the step forward”, says Federico Montero, analyst at Evercore Partners, referring to the other Italian financial institutions with doubtful loans on their balance sheets.

UniCredit will divest these doubtful debt portfolios at a discount of 77%. That is higher than the 73% discount at which another one of the Italian banks in distress, Monte dei Paschi di Siena, is planning to sell its doubtful loans, amounting to €28,000 million, to Atlante, the Italian state fund for the bail out of the financial sector.

On average, Italy’s banks are valuing their doubtful debt portfolios on their balance sheets at a discount of 57%, according to data compiled by Reuters. UniCredit’s share price fell by 6.4% on the stock exchange (yesterday) and has fallen by 48% so far this year.

Monte dei Paschi

Monte dei Paschi, the oldest bank in the world and the third largest in Italy, confirmed yesterday that the ECB has rejected its request to extend its capital increase amounting to €5,000 million until the middle of January. The entity’s Board of Directors met yesterday and will convene again today to announce their definitive plan, according to sources quoted by the Reuters news agency. The market takes it for granted that the entity will need public aid for its recapitalisation.

Original story: Expansión

Translation: Carmel Drake

Acciona Rules Out Socimi Creation & Replaces Walter de Luna As CEO

17 November 2016 – Expansión

Acciona has revised its real estate strategy after spending the last year working on its stock market debut and searching for a partner for its real estate division, which is worth more than €1,000 million.

The rethink has resulted in the departure of Acciona Inmobiliaria’s CEO, Walter de Luna (pictured above), the star recruit from Sareb, who joined the group owned by the Entrecanales family in 2014, with the aim of listing the company on the stock exchange, whereby taking advantage of the recovery in the market.

After 18 months working on a possible IPO and being advised by Morgan Stanley, Acciona has decided to cancel its stock market plans, due to an increase in the uncertainties and volatility surrounding such markets. That same uncertainty also put pay to its plans to list its renewable assets on an overseas stock market, through a yield (high dividend) vehicle in the USA.

The company has now redefined its strategy, which, in principle, sets aside the real estate activity and focuses on development. This change means that its rental portfolio (1,382 homes, 36 premises, two hotels, several office buildings and 155,000 m2 of land) will be moved into the main portfolio, as assets available for sale.

Acciona has just executed one divestment, with the sale to the Socimi Merlin of its 50% stake in the Arturo Soria Plaza shopping centre, for €44 million. Sources in the sector indicate that the construction company chaired by José Manuel Entrecanales is holding conversations with Merlin to sell other assets to the Socimi, such as Urbanizadora el Coto, which other investors have also expressed interest in.

The revenues obtained from the sale of Acciona’s rental assets will be used to invest in new developments. Acciona currently has a stock of around 300 homes, of which around one hundred are located in Mexico and Poland.

In 2015, Acciona carved out its pure property development business from its real estate business. Its rental homes, buildings and land were transferred into a new company called Acciona Real Estate, whose most recent valuation, according to the company, amounted to €630 million. In total, the division is worth €1,200 million.

The real estate company was born with a debt of €199 million. An important part of the subsidiary is Urbanizadora del Coto (rental homes and premises in Madrid), which Acciona purchased from the Cavero family in 2006.

According to the accounts for 2015, the real estate division saw its turnover fall by 45% to €51 million and its EBITDA decrease by €3 million to €6 million, compared with the previous year. Acciona’s share price closed down 1.2% yesterday at €63.80 per share.

Original story: Expansión (by C. Morán and R. Arroyo)

Translation: Carmel Drake

Popular Considers Buying Back Aliseda

19 October 2016 – Reuters

Banco Popular said on Tuesday that it is considering buying back its real estate management company Aliseda as part of its real estate asset deconsolidation process.

Aliseda currently manages the Banco Popular Group’s properties and the bank holds a 49% stake in the entity; the remaining 51% is held by the investment funds Värde Partners and Kennedy Wilson.

“This is one of several options being considered, but so far, the bank’s decision-making bodies have not made any final resolutions”, said the financial institution in a statement.

Popular sold the majority stake in Aliseda in 2013 in an operation that, according to sources, amounted to around €800 million.

Popular said last month that it is considering the creation of a vehicle to group together the properties owned by the entity, which may list on the stock exchange.

The value of these assets would amount to €6,000 million and according to analysts, the integration of Aliseda into the project would allow it to guarantee constant cash flows thanks to the funds obtained from the rental of the properties.

Banco Popular, which is currently financing 100% of these proeprties, said that the new subsidiary would look to raise financing in the capital markets.

Original story: Reuters

Translation: Carmel Drake

Optimum RE’s Share Price Rise By 10% In First Week On The MAB

7 October 2016 – La Vanguardia

The CEO of Optimum Re Spain, Josep Borrell Daniel, has positively assessed the debut of his Socimi on the Alternative Investment Market (MAB) and highlighted that its value on the stock market has increased by 10% in just a week.

Borrell was speaking at an event “Socimis: the road to a new real estate sector” organised by Garrigues, Gesvalt and Solventis in Barcelona.

He said that the value of Optimum Re Spain, a Socimi that specialises in the residential market in the centres of Barcelona and Madrid, has increased by 10% on the stock exchange in just a week, following its debut on the MAB.

Optimum RE Spain owns around 15 buildings in Barcelona and Madrid, with an average purchase price of €2,000/sqm and average rents of 4.5%, which will increase to 5% or 6% over the next few years.

Borrell highlighted that his objective is to significantly improve the quality of the buildings and increase their rents with the aim of divesting the assets within a period of seven years to obtain an “attractive return”. He acknowledged that those sales may happen “sooner or later” depending on the evolution of the market.

The fact that the Socimi has purchased at the low point of the cycle means the properties will generate significant returns and he hopes to be able to sell them for between €3,500/sqm and €4,000/sqm.

The Socimi has invested around €70 million to date and still has another €4 million or €5 million to spend.

Borrell said that he is considering constituting another Socimi, similar to Optimum RE Spain or a rental Socimi: “we have the capital, the problem is choosing the product”, he said.

Original story: La Vanguardia

Translation: Carmel Drake

Quabit’s Losses Decreased By 45% In H1 2016

16 August 2016 – Expansión

Quabit has closed the first half of the year with a net loss of €3.29 million, representing a reduction of 45% compared with H1 2015. The firm chaired by Félix Abándades has multiplied its revenues five-fold, to €21.1 million, and has reduced its net debt by 4% to €216.8 million as at the end of June.

The real estate group recorded gross operating losses of €3.45 million, which represents a reduction of 41% with respect to the negative balance recorded during the same period in 2015.

Quabit – which is in the middle of a five year business plan – underlined the fact that both the generation of revenues as well as of profits will “happen gradually” as its residential projects progress. They have a maturity period of between 24 to 36 months, which means that, during the first two years of the plan, the company’s EBITDA will remain negative.

The group added that, during this period, it will be possible to obtain profits through discounts on its debt and the gradual activation of tax credits. Quabit has agreed payment conditions on its debt that will allow it to register profits from discounts on its debt amounting to €55 million. It also has unregistered tax credits on its balance sheet amounting to €183 million.

On Friday, the company’s share price fell by 0.31% on the stock exchange to €1.74.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Axactor Buys Its Fifth Debt Portfolio In Spain For €565M

2 August 2016 – Cinco Días

The Norwegian company Axactor is continuing with its commitment to Spain. Yesterday, it announced the purchase of a new debt portfolio in the Spanish market for €565 million, which represents the company’s fifth operation this year. In this way, Axactor is pushing ahead with its growth strategy in Spain and is strengthening its position as one of the main operators in the debt management sector. Juan Manuel Gutiérrez (pictured above right), Head of Axactor in Spain, confirmed that “ we are totally focused on growth: this acquisition forms part of our plans to continue increasing our presence in the Spanish market, through both the purchase of portfolios and the management of debt for third parties”.

The new debt portfolio acquired by Axactor comprises secured and unsecured loans amounting to €565 million. The portfolio includes almost 30,000 accounts held by individuals and small and medium-sized companies. This acquisition comes after the firm closed another deal in July in the primary market, when it purchased a debt portfolio for €144 million from Banco Mare Nostrum.

Since December 2015, the company has tripled the number of cases under management (from 250,000 to 780,000) and it has quadrupled the total volume of debt under management (from €2,140 million to €9,035 million). Spain has become the fastest growing market for the group and is at the centre of its strategy to become the leader of the debt management market in mainland Europe. Its progress was boosted by the acquisition of Geslico, an operation that allowed the Nordic firm to become the second largest operator in this business segment.

In addition, the incorporation of that company into the group has allowed Axactor to cover the entire value chain of the debt business and has facilitated operations involving collections and debt purchases thanks to a complex IT system to which Axactor has obtained access as a result of the integration of Geslico.

Axactor bought the management company of the former savings banks from the opportunistic fund Fortress, following the US firm’s withdrawal from the country. In this way, Axactor began its international expansion several months ago and chose Spain for that purpose. Its strategy involves becoming the leader of the debt management market in mainland Europe. “Spain has become the launch pad for this strategy and a key market for the Norwegian group”, said the firm, which is listed on the stock exchange.

Original story: Cinco Días (by A.G.)

Translation: Carmel Drake

Catalan Socimi Quonia: CNMV Authorises Market Debut

28 June 2016 – Valencia Plaza

The Catalan Socimi Quonia now has an ISIN code, required to list on any organised market, such as the stock exchange, according to sources. Specifically, it was issued the passport by the National Agency for Securities Codification (ANCV), which forms part of Spain’s National Securities and Exchange Commission (CNMV) on 7 June.

This code is essential for listing and it represents an international reference number that may be used on capital markets around the world. In the case of Quonia, the plan is for it to list on Spain’s Alternative Investment Market (the MAB), where a sizeable number of Socimis are already listed.

And others, such as GMP, the powerful Madrilenian Socimi, which sold the Mercado de Campanar in Valencia just four months ago, will not take long to join it, as its also now has the “permit” required to list on the stock market.

Purchase of Hotel Internacional

In theory, the debut of that group (GMP), founded by the Montoro family – in which the sovereign fund Singapur GIC owns a 30% stake – was scheduled for the summer, according to sources consulted by Valencia Plaza. However, in light of the current instability following the triumph of Brexit, we will have to wait and see what the heads of GMP, the owners of Madrid’s iconic BBVA Tower, end up deciding.

Quonia must be thinking the same. The company specialises in the rental of real estate asset and was founded in Barcelona at the end of July 2010. It is led by Divo Milan Haddad, a businessman whose investments are focused on the real estate sector, both in Europe and Latin America, primarily in Mexico.

Quonia acquired Hotel Internacional de la Rambla from Husa last April, after the vendor filed for bankruptcy last autumn, after receiving authorisation from the Catalan court for just over €11 million.

Original story: Valencia Plaza (by Luis A. Torralba)

Translation: Carmel Drake

Aena Plans To Sell Off Land & Move Its HQ To Barajas

21 June 2016 – El Confidencial

(…). Aena has launched an ambitious plan to generate the maximum possible returns from its vast land holdings, above all, those located around the two jewels in the group’s crown: the Madrid-Barajas Adolfo Suárez and Barcelona-El Prat aerodromes.

The airport manager, whose main objectives since it debuted on the stock exchange has been to optimise its real estate assets, has decided to split the land auction that it has launched into three batches to obtain the maximum benefit from its wealth: the first is limited to Madrid-Barajas Adolfo Suárez; the second to Barcelona-El Prat airport; and the third comprises all of the strategic and real estate consultancy work.

According to El Confidencial, the only way of participating in the bid is by invitation and to this end, the company led by José Manuel Vargas is now making contact with the best international firms in the sector.

In order to benefit from the extensive plan, the company has also decided to consider transferring its headquarters to the capital’s airport, where Aena has ambitious plans, not only to construct offices and hotels, but also to complete its service offering, with meeting rooms for executives, as well as new hangars and warehouses. (…)

Behind Aena’s plans is the logic that the airport manager is the tenant of the buildings that it currently occupies in the capital and which it would vacate if this operation ends up going ahead: the building on Calle Arturo Soria 109, which houses Aena Desarrollo Internacional, and the property on Peonías 12, in the elitist area of La Piovera.

New times, new businesses

(…). Aena owns 2,000 hectares of land around its aerodromes, land that is concentrated in Madrid (which accounts for 40% of the total or 800 hectares) and Barcelona (18% or 360 hectares). The vast size of this space, together with the hub nature of these two infrastructures, are the two pivots around which the public company is designing its master plan.

On the one hand, it wants to take advantage of the boom in e-commerce and of the growth of companies such as Amazon, to construct and lease warehouses that will become the large storerooms of these types of companies in our country. (…).

On the other hand, Aena also wants to build new hangars for airlines on land closer to the airport terminals, something that it has already done under the terms of the agreement signed with Globalia for its subsidiary Air Europa at Terminal 1.

Finally, the airport manager wants to build hotels, offices and meeting centres in the vicinity of Barajas and El Prat, an initiative aimed at turning the two jewels in its crown into genuine airport cities and meeting points, which will allow executives from all over the world use these two infrastructures as their operational bases. (…)

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake