Sareb’s Socimi Makes it MAB Debut with 1,383 Homes on the Outskirts of Spain’s Large Cities

3 April 2018 – Expansión

Sareb’s Socimi is making its debut today on the Alternative Investment Market (MAB) with a total valuation of €152.7 million. The company owns 1,383 homes, inherited from the rescued savings banks, located close to Spain’s large and medium-sized cities. Most can be found in very dynamic metropolitan areas such as Vallecas, with annual price rises of 10%-12%, and Hospitalet de Llobregat, as well as in places further afield, such as Manresa (Barcelona).

Témpore Properties, which has just two employees on its payroll, has delegated all of its management work to Azora, which will charge €1.5 million for its services in 2018 and €1.7 million in 2019, provided it fulfils all of the objectives set out in the business plan in terms of profitability and occupancy rates.

Azora, which is also the management firm for Hispania and Goldman Sachs, employs 140 people, half of whom work for Sareb directly or indirectly.

“Our greatest challenge is to increase the profitability of the rental portfolio from 3.7% to 5.5%”, explains Nicolás Díaz Saldaña, CEO of Témpore Properties and former Head of Rentals at Sareb.

As a first measure, the company is going to increase its rents, taking advantage of the renewal of its rental contracts. 33% of them expire in 2018, another 36% in 2019 and the remainder in 2020. “The prices that were applied by the savings banks are very out of date”, explains Díaz Saldaña. The average increase will amount to 15% and will rise to 20% in the outskirts of Madrid and Barcelona. The company assures that, despite those increases, 80% of its tenants are renewing their contracts.

Témpore is tightening up the requirements to access its homes in an effort to reduce its default rate, which currently stands at 4.8%. It demands the payment of a rental insurance from future tenants, which has a cost of €10 per month, as well as the one-month mandatory deposit. Moreover, the monthly rental cost may not account for more than 40% of the total income of the family unit.

In total, 24% of Témpore’s homes are located in Barcelona. “The Catalan political risk is not holding back rental prices. The rise in the metropolitan area of Barcelona stands at around 6%-10%”, says the CEO. 36% of the new package of homes that Sareb is going to transfer to the Socimi this year are located in Cataluña.

Témpore does not have any bank debt and has a credit line open with Sareb amounting to €2 billion, which it has not made use of yet.

The bad bank owns 98.5% of the Socimi and the intention is to allow investors (primarily institutional) to acquire shares, in such a way that will end up with a minority stake within three years. Témpore assures that there are many real estate funds, insurance companies and pension funds with liquidity willing to invest.

“Our business is one of scale. Témpore has to aspire to being as large as Testa Residencial, our best comparable”, says Díaz Saldaña.

Testa, in which Santander, BBVA, Acciona and Merlin all hold stakes, is planning to make its stock market debut at the end of May or beginning of June this year.

Original story: Expansión (by R. Lander)

Translation: Carmel Drake

Témpore Properties Appoints Directors & Finalises its IPO

6 March 2018 – Expansión

Témpore Properties, the Socimi created by Sareb, has started the countdown to its debut on the stock market. It will make the leap within the next few weeks, possibly before Easter, once the bureaucratic procedures have been completed. It will list on the Alternative Investment Market (MAB), like the vast majority of the 50 Socimis whose shares already trade on the stock market.

The company has been created with a selection of 1,500 assets, of which 1,383 are urban residential properties that generate returns of 3% per annum. The remainder are storerooms and garages. The combined value of the assets amounts to €175 million. Témpore’s size places it in the low-medium bracket in the sector, excluding Socimis backed by family capital. Its perimeter may be increased depending on the needs of Sareb, which has been backing property development in recent times. “Other Socimis do not have that option”, explain sources at the bad bank.

Azora is the manager of the Socimi and Renta 4 and Clifford Chance are advising the IPO process.

Yesterday, the Board of Témpore Properties held its first meeting after approving agreements relating to the entity’s internal operation and the listing process. The Socimi is chaired by Juan Ramón Dios Rial, Director of Real Estate Development and Promotion at Sareb. During the course of his career, Mr Dios has held various positions at TSB Bank, Citigroup, General Electric Capital Bank and Barclays España.

The Board of Directors comprises five members: three independent directors, one executive director and one proprietary director. They are Juan Ramón Dios, Nicolás Díaz Saldaña, Socorro Fernández, Rafael de Mena and Galo Juan Sastre.

Appointments

Témpore Properties is going to be led by Nicolás Díaz Saldaña, who has been the Director of Rental Mangement at Sareb until now. He will serve as the CEO and will sit on the Board as an executive director. Previously, he worked at BBVA, was Director of the International Team at Metrovacesa and CEO of the French Socimi Gecina. The company’s Finance Director is going to be Pelayo Barriga, who has been performing the same role at Sareb until now.

With Témpore Properties, the managers of Sareb are intending to open a window into the rental market, which is proving more profitable than property sales in certain segments. Moreover, through this route, the bad bank is going to be able to access new private capital and slightly reduce its high level of indebtedness.

By law, Socimis are obliged to remunerate their shareholders, and so Sareb can expect to receive dividends from Témpore.

Original story: Expansión (by R. Lander)

Translation: Carmel Drake

Témpore Properties Secures Sufficient Minority Shareholders Ahead of its MAB Debut

23 February 2018 – La Información

The team at Sareb has overcome the penultimate obstacle to enable the Socimi that it has created, Témpore Properties, to take the final step towards starting to trade on the Alternative Investment Market (MAB), as set out in the initial plan drawn up by Jaime Echegoyen (pictured above) almost a year ago. According to sources familiar with the process, Témpore has now successfully completed the incorporation of around twenty minority shareholders into its share capital, as required by the MAB, so that the Socimi can trade on that market.

And this latest milestone is no mean feat. Sources in the sector say that around half a dozen Socimi projects, driven by large fortunes and family offices, have run aground due to their inability or lack of interest in fulfilling that requirement. Specifically, the MAB requires at least €2 million of a company’s share capital (or 25% of the equity if the company has a share capital of less than €8 million) to be owned by around twenty minority shareholders. The managers of the MAB also require that those minority shareholders have no family or business links with the owners of the company and that no single shareholder holds a participation equivalent to more than 5% of the total or worth less than €60,000. The reasons? On the one hand, to emphasise the nature of Socimis as collective investment instruments; but also, to prevent any kind of activity that seeks to use investors as “mariachis”, which is what triggered the inspections against Sicavs back in the day.

Over the last two months, Nicolás Díaz Saldaña, the Director General of Sareb and person responsible for the Témpore Properties project, and his team have maintained permanent contact with investment banks, funds and offices representing large fortunes to search for the most appropriate and most interested profiles to form part of Témpore. That process has also been supported by Ázora, Sareb’s advisor in everything relating to the Socimi’s stock market debut.

Offers to buy Témpore

According to financial sources, investors have welcomed the presentation of the Témpore project with enormous interest, and not only with a view to participating as minority investors. Sareb has received several offers from investment funds and even from other Socimis to acquire Témpore Properties, an investment vehicle in which the so-called bad bank has placed 1,554 of its best rental assets (mainly homes) with an aggregate value of €175 million.

Sareb’s Management has even been seriously considering some of the offers received, according to sources familiar with the contacts, but in the end, it has opted to go with the initial plan and push ahead with the project to have the Socimi debut on the MAB independently, at least to begin with. The next step in this process will be the presentation of the prospectus, which will mark the beginning of the final phase of the stock market debut of Témpore Properties.

The debut of Sareb’s Socimi on the stock market has taken longer than originally planned. Initially, Témpore Properties was expected to make its debut before the end of 2017 and, in fact, in September last year, Sareb formally requested the mandatory authorisations from the MAB and the Ministry of Finance to make its debut in 2017. Nevertheless, the turbulent political panorama and the difficulties that have marked the configuration of the project have delayed the timeframes initially established and now the only objective is for Témpore to make its debut before the end of June 2018.

Original story: La Información (by Bruno Pérez)

Translation: Carmel Drake

 

Residential Socimi Galil Capital Receives Green Light for MAB Debut

21 February 2018 – Eje Prime

A new Socimi is going to make its stock market debut in 2018. Galil Capital, a company specialising in residential assets, has received the green light from the Alternative Investment Market’s Coordination and Incorporations Committee to start trading. Worth €20.5 million, the company still has to wait for approval from the MAB’s Board of Directors, which always has the last word.

Galil Capital RE Spain has received a favourable report from the body responsible for the entry of new companies onto the MAB, to which it has submitted a reference price for its company of €10 per share.

The company’s portfolio of real estate assets comprises five buildings located in Barcelona and Madrid, which all have commercial premises on their ground floors, also owned by the Socimi.

With this new arrival, the MAB will come close to having fifty listed companies, and that is before the debut of Témpore Properties, the Socimi owned by Sareb, which plans to ring the bell before the spring. The company’s GAV amounts to €175 million, a volume that will be added to the €773 million in assets that have made their debuts on the Alternative Investment market in recent months.

Original story: Eje Prime 

Translation: Carmel Drake

Azora Group Explores its Own Stock Market Debut

15 February 2018 – La Información

The Azora Group, the manager of the moment in the Spanish real estate sector, following the successful launch of its Socimi Hispania, which managed to attract well-known international investors such as George Soros, is now considering its own debut on the stock market, according to financial sources familiar with the situation, speaking to La Información. In parallel, it is continuing to work on the assignment to debut Sareb’s Socimi, Témpore Properties, on the stock market.

According to the sources, the investor group controlled by Concha Osácar (pictured above, third from left) and Fernando Gumuzio (pictured above, far left), through the parent company Azora Altus, has already taken the first steps towards processing its debut on the stock market, a move that the company declined to comment on when consulted in this regard. According to the definition that is available on the website of one of the other Socimis that it has debuted on the market and which it now manages exclusively following Hispania’s model, Colón Viviendas, the Azora Group “is made up of independent private equity managers specialising in the real estate sector”. Founded in 2003, the group employs 400 professionals and, according to its own estimates, manages an asset portfolio worth more than €4.1 billion. In addition to Hispania and Colón Viviendas, the group manages another collective investment instrument: Lazora.

Two well-known bankers are behind the Azora Group, both former members of Banco Santander’s private banking team: Concha Osácar and Fernando Gumuzio, who control the group’s parent company through two holding companies, Baztán Consultores and Hermanos Bécquer 10, respectively. They would be the major beneficiaries of this latest planned move (…).

Change of strategy

The Azora Group’s decision to direct its steps towards the stock market comes just a few months after Hispania’s General Shareholders’ Meeting took the decision to liquidate that Socimi in 2020. The possibility was included in the initial business plan set out at the time by Azora, but the subsequent remarkable performance of the company has opened up the possibility of that project becoming a reality. Not in vain, the firm had climbed to the status of being the largest owner in the domestic hotel sector, with 39 hotels and 11,200 rooms in its portfolio, and a flow of profits significantly higher than forecast: €308 million in 2016 and €185 million in H1 2017, up by 35% YoY.

Having established Hispania’s expiry date, the Azora Group unleashed a series of decisions in the following months. In May, it decided to liquidate Azora Europa 1, another real estate investment fund in which it managed to involve Sabadell Patrimonio, Abanca, Kutxabank, Caixabank, Bankia and investors such as Manuel Jové. The next step was to begin the process to debut a new Socimi on the MAB, Colón Viviendas, whose assets comprise 300 public rental apartments acquired from the Consell Comarcal del Barcelonés back in the day.

Almost in parallel, Azora placed another Socimi on the MAB, through Hispania and in partnership with Barceló. In that case, the assets were linked to the hotel sector, in the form of Bay Hotels & Leisure, with a portfolio worth €790 million, according to the prospectus. That adventure looks set to be coming to an end after Hispania first took over Barceló’s stake and then notified the CNMV, a few days ago, of its intention to exclude the entity from trading on the MAB due to the lack of appetite from minority shareholders and the reduced liquidity of its shares.

Original story: La Información (by Bruno Pérez)

Translation: Carmel Drake

Sareb Sells €625M in NPLs to Deutsche Bank & Oaktree

20 December 2017 – El Independiente

Sareb (…) is closing 2017 by completing two of its largest operations of the year, with the sale of two non-performing loan portfolios to two large international funds.

The German bank Deutsche Bank has been awarded one portfolio comprising €375 million in non-performing loans, whilst the US fund Oaktree is on the verge of acquiring another portfolio, containing around €250 million in NPLs. Both portfolios, known as Project Inés and Project Tambó, respectively, stand out as two of the largest transactions undertaken by the so-called bad bank this year, confirmed sources familiar with the deals to El Independiente.

Project Inés, which was initially put up for sale with a nominal value of €500 million and which has been closed with a smaller perimeter (€375 million), as tends to be the case, primarily comprises mortgage loans secured by collateral. Meanwhile, Project Tambó was placed on the market with a nominal value of €300 million and now seems to be closing at around the €250 million mark.

Sareb was constituted in 2012 with the mission of selling 200,000 real estate assets, proceeding from the banks, worth just over €50 billion.

Moreover, in July, it launched its channel for the sale of non-performing loans worth €400 million aimed at investors and professionals to boost the divestment of a proportion of its portfolio of financial assets. Its commitment is to proceed with the liquidation of the properties and loans that it has acquired, before November 2027.

To accelerate the process, Sareb plans to debut its Socimi Témpore Properties on the stock market at the beginning of 2018. The Socimi owns a selection of Sareb’s best rental homes, almost 1,400 properties in total, in the metropolitan areas of Spain’s large capitals and other areas with high demand for rental.

The Socimi’s debut will happen during the first quarter of next year, since, although Sareb has everything in place to start to trade and its original plan was to list the company by the end of 2017, its negotiations with the MAB, the alternative market where the Socimi will trade, are still on-going (…).

During the 9 months to September, Sareb sold a total of 13,796 properties, which represents an increase of 55% with respect to the same period in 2016. Of those, 7,855 related to owned properties and 5,941 were linked to loans (…).

Revenues

Sareb’s total revenues as at September rose by 3.6% with respect to the first nine months of 2016, to €2.394 billion.

The company highlights that, given the composition of Sareb’s asset portfolio – 68% of which relates to loans linked to the real estate sector – the weight of revenues resulting from the management of loans is still more significant than those generated from the sale of properties.

Meanwhile, revenues from the management of loans decreased by 6.8% during the first nine months of the year, to reach €1.599 billion, primarily due to the lower interest charged and the reduction in loan repayments and cancelations as the portfolio is smaller than it was last year.

Original story: El Independiente (by Ana Antón)

Translation: Carmel Drake

Housing: The Bastion of the Socimis on the MAB

14 December 2017  – Expansión 

More than fifteen of the listed Socimis have residential properties in their portfolios. Alternative assets are also sneaking into the portfolios of many of the companies that trade on the MAB.

Homes, offices, hotels, shops, warehouses, land under development, health centres, student halls and even gas stations. The 44 Socimis that are currently listed on the Alternative Investment Market (MAB) are involved in the rental of all kind of assets, but housing is the star for these listed vehicles, which currently hold more than €12.22 billion in their portfolios and capitalise €6.835 million.

In this way, in contrast to the scarce presence of rental housing owned by the vehicles listed on the main stock exchange, housing accounts for 21.9% of the portfolios of the Socimis on the MAB. Specifically, of the firms specialising in residential, a few stand out: Fidere – the Socimi owned by Blackstone which made its stock market debut in 2015 with 2,688 social housing properties purchased during the crisis – and Colón – and rental housing Socimi controlled by Azora, which debuts on the stock market in June. Altogether, 16 companies have residential assets in their portfolios, according to data from Armabex.

After housing, offices account for 20.4% of the assets in the Socimis’ portfolios, followed by shopping centres (14.2%), shops (13.9%), industrial warehouses (6.3%) and hotels (5.7%).

In terms of geographical distribution, Madrid leads the investment by Socimis, with €5.684 billion – 46.5% of the total -, whilst Barcelona accounts for 11.2%, with €1.364 billion. The other assets – €4.34 billion – are located across the rest of Spain.

In terms of the investor profile, the main stars on the MAB are non-resident, accounting for 55.1% of the assets incorporated. In 2017, seven Socimis owned by non-resident investors joined the MAB, with assets worth €1.388 billion.

Trends

For Antonio Fernández, President of Armabex, the trend over the next few months will be characterised by fragmentation and specialisation. For example, of the 17 new companies listed in 2017, two specialise in hotels –Bay Hotels & Leisure (the Socimi owned by Hispania and Barceló, which made its debut in the summer) and Elaia Investment Spain (previously Eurosic Investment Spain, which debuted in November)-, one owns gas stations – Kingbook Inversiones –, and more recently, one specialises in industrial warehouses – P3 Spain Logistic –.

The latter is a Socimi of Socimis, in other words, a Socimi that controls 100% of another company of the same kind, which is not listed but which has the same obligations and tax benefits as a regular Socimi. “46% of all Socimis own other non-listed Socimis. It is a structure that is used a lot when it comes to constituting asset portfolios. It allows companies to be sold and new shareholders to enter individually”.

In this company structure context, we are also starting to see investors crossing between Socimis. In this way, for example, the Singapore fund features in the share capital of P3 Spain Logistic and GMP. Similarly, the financial institutions have bet on this vehicle for their real estate assets. In this way, Banca March will debut a Socimi that owns the ABC Serrano shopping centre, which it acquired from CBRE Global Investors in June, and Sareb is preparing for the debut of Témpore Properties.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Témpore Properties Starts Out with a Portfolio of 1,383 Homes

28 November 2017 – Sareb

Témpore Properties, the Socimi constituted by Sareb, the ‘Company responsible for the Management of Assets Proceeding from the Restructuring of the Banking System’, has started its journey with a package of 1,554 assets, of which 1,383 are homes and the rest are associated assets (storerooms and garages). The total value of the transferred assets amounts to €175 million.

The portfolio transferred by Sareb is concentrated in the metropolitan areas of Spain’s large capitals (80%); the remainder is located in geographical areas that have high demand in the rental market, such as the provinces of Valencia, Sevilla, Zaragoza, Málaga and Almería. The homes have an average size of 93 m2 and have two or three bedrooms.

The management of this portfolio has been assigned to Azora, which is going to be directly responsible for the work required to administer and market the assets. In parallel, Sareb is continuing to work with its advisors Renta 4 and Clifford Chance on Témpore’s stock market debut on the Alternative Investment Market (MAB), which will take place at some point in the next few weeks, once all of the necessary procedures have been completed.

Diaz Saldaña, Head of the Socimi

The culmination of the asset transfer process coincides with the configuration of the management team of Témpore Properties, headed by the Director of Rentals at Sareb, Nicolás Díaz Saldaña.

Diaz Saldaña has extensive experience as a senior manager in the real estate and financial sectors, with a special focus on the international market. Between 1991 and 1997, he developed analysis services for the Institute of Economic Studies. Subsequently, Saldaña held different positions at BBVA between 1997 and 2008, where he rose to lead the bank’s subsidiaries in Benelux and Germany. Before joining Sareb, Saldaña led the international division at Metrovacesa during the toughest period of the real estate crisis.

Original story: Sareb

Translation: Carmel Drake

Sareb Appoints Azora To Manage Its First Socimi, Témpore Properties

21 September 2017 – El Confidencial

Sareb has chosen one of the largest experts in the management of rental housing in Spain to commandeer its first Socimi. The expert in question is Azora, an independent firm with almost 15 years experience and more than €3,000 million of assets under management. Azora’s key milestones include the creation and management of Hispania, one of the largest Socimis in Spain.

After organising a competitive process between several candidates, the entity chaired by Jaime Echegoyen (pictured above), has chosen the management firm founded by Concha Osácar and Fernando Gumuzio to take the reins at Témpore Properties, the name that Sareb has given to its first Socimi. The appointment is still pending the final approvals.

Sareb’s new vehicle will own around 1,500 rental properties, worth almost €200 million. The entity wants to place the assets, which have been valuedby CBRE, on the market before the end of the year.

Having engaged Renta 4 as the registered advisor and Clifford Chance as legal counsel, the next major challenge for Sareb will be to convince the greatest possible number of investors about the virtues of the Socimi, given that, although its market debut will be made on the MAB – the Alternative Investment Market – Echegoyen’s aim is to sell the highest percentage of share capital possible.

In this way, Azora will play an important role, given that over the course of its history, it has managed more than €1,700 million from institutional investors through its five funds, as well as having a cover letter from Hispania, whose illustrious shareholders include none other than George Soros.

Nevertheless, in recent times, the management firm has been focusing on the divestment of the bulk of these vehicles, given that they are now reaching maturity.

In fact, this week, the firm closed the sale of Resa, the largest student hall of residence company in Continental Europe, which formed part of Lazora, a vehicle with which the manager started when it focused exclusively on rental homes.

Moreover, since the spring, the firm has been actively working on the liquidation of the fund Azora Europa 1 as well as of the Socimi Hispania, which is on the verge on selling its entire office portfolio to the insurance firm Swiss Life.

Azora is also behind the sale of 3,000 homes in the Community of Madrid to Goldman Sachs, which now comprise the company Encasa Cibeles, and of the purchase of four Consell Comarcal de Barcelonés developments from several Catalan town halls, assets that it has just debuted on the MAB through its Socimi Colón Viviendas.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

MAB Approves Stock Market Debut Of Socimi Numulae

19 July 2017 – TeleCinco

The Alternative Investment Market (MAB)’s Coordination and Incorporations Committee has sent a favourable evaluation report to the MAB’s Board of Directors regarding the Socimi Numulae’s compliance with the joining requirements after it had evaluated all of the documentation submitted.

The company’s debut will require prior approval by the MAB’s Board of Directors. The company’s trading code will be YNUM and its shares will be traded through the price fixing system.

Renta 4 Corporate is the registered advisor and Renta 4 Banco is the liquidity provider.

The company’s Board of Directors has set a reference value of €1.90 for each one of its shares, which represents a total company valuation of €10.4 million. Numulae is a real estate investment company, which aims to provide its investors with returns from rental income and capital appreciation based on the selective acquisition and active management of real estate properties in Spain.

Between 10 and 15 new Socimis will debut in H2

Renta 4 Banco predicts that between 10 and 15 additional Socimis will make their debuts on the MAB between July and December, which means that the entity expects there to be between 45 and 50 companies of this kind trading on the stock market by the end of the year (…).

One of the companies that is expected to make its debut is Sareb’s Socimi, Témpore Properties, which has engaged Renta 4 Banco as its global advisor for its stock market debut, which is scheduled to happen before the end of the year. Currently, only two listed real estate investment companies (Socimis), Merlin and Colonial, trade on the Ibex 35, the most prestigious index in Spain.

Original story: TeleCinco

Translation: Carmel Drake