Socimi VBare Acquires a Building in Madrid for €5.3M

9 January 2019 – La Vanguardia

The Socimi VBare Iberian Properties Socimi has purchased a building comprising 27 homes and 2 commercial premises in Madrid for €5.3 million plus transaction costs.

In order to purchase the property, which is located on Calle Vallehermoso in Madrid, VBare has signed a mortgage loan with Banca Pueyo for €3.43 million, contributing the rest of the purchase price through available cash.

The property is mainly dedicated to residential use and the expected net approximate yield will amount to 4.3% once the refurbishment work has been completed.

The building has a surface area of approximately 1,500 m2 and is the second most significant acquisition carried out to date by VBare in terms of investment volume, after the operation it completed on Calle Luchana in Madrid in October 2018.

Original story: La Vanguardia

Translation: Carmel Drake

VBARE Appoints Fabrizio Agrimi As New CEO

20 November 2017 -Revista Centros Comerciales

On Monday, VBARE Iberian Properties Socimi (VBARE) announced the appointment of Fabrizio Agrimi (pictured below) as the new CEO of the Socimi. Agrimi is a grand connoisseur of the real estate sector and has extensive experience in investments, mergers and acquisitions, not only in Spain but also in the United Kingdom and Italy. He has worked for a number of high profile international companies and until May 2017 he was Managing Director and Partner at Altan Capital.

Prior to joining Altan Capital in 2007, Fabrizio Agrimi formed part of the Investments Department at Aguirre Newman (2004-2006), where he participated in the acquisition, management and sale of numerous real estate assets. Prior to that, he worked in Milan and London for the law firm Vita Samory, Fabrini e Associati (now part of Orrick) where he was a member of the M&A, Private Equity and Financial Services teams.

Fabrizio Agrimi holds an MBA from the ESADE business school (Barcelona) and a degree in Law from the University of Trento. Whilst at university, Fabrizio completed two international internships at the law firm Sebastià Roca i Associats (now part of Roca Junyent) in Barcelona and at the European Parliament in Luxembourg.

With this addition, VBARE strengthens its team and consolidates its base for growth. VBARE recently presented its results for the first nine months of the year, during which time it generated a profit of €2,177,000, resulting primarily from the appreciation in value of its real estate portfolio. Revenues from rental income amounted to €781,000, which represented an increase of 188% with respect to the same period last year. The total value of VBARE’s property portfolio amounts to €28.2 million, up by 17% compared to the end of 2016.

Original story: Revista Centros Comerciales

Translation: Carmel Drake

VBARE Iberian Properties Approves €10.4M Capital Increase

6 June 2017 – Press Release

At a meeting held yesterday (5 June 2017), the Board of Directors of VBARE Iberian Properties Socimi (VBARE) approved an increase in the company’s ordinary share capital amounting to €3,941,505.00, through the issue of a maximum of 788,301 ordinary shares. The new shares will be issued for a nominal value of €5.00 plus an issue premium of €8.00 per share, which results in an issue figure of €13.00 per share. In the event that the capital increase is fully subscribed, it will amount to €10,247,913.00 in total, in other words, €3,941,505.00 corresponding to share capital and €6,306,408.00 corresponding to the issue premium.

VBARE, which was created with a clear mission for growth, has achieved an average cumulative appreciation in value on the amount invested of 57% (which represents an average discount of 36% on the investment made), which, at the end of the first quarter of 2017, amounted to €15.9 million.

The aforementioned capital increase has been undertaken in response to demand from several investors, with a view to continuing growth, through the acquisition of a series of identified assets that fit with the company’s strategy.

About VBARE Iberian Properties Socimi (VBARE)

VBARE is a real estate investment vehicle specialising in the acquisition and management of residential assets for rental under the special regime afforded to Listed Real Estate Investment Companies (Socimis). The company has been listed on the MAB since 23 December 2016.

VBARE was constituted in March 2015, with the aim of generating a high return for its shareholders through the implementation of a value-added strategy and of benefitting from existing opportunities in the Spanish residential market, which has been showing clear signs of recovery.

For the time being, VBARE owns a portfolio of 182 homes. To date, the company has been analysing assets worth more than €500 million and it is constantly on the look out for new business opportunities that fit the scope of its investment policy.

Original story: Press Release

Translation: Carmel Drake

Socimi VBARE: Why Are Rental Prices Are So High?

10 November 2016 –

Rental prices are soaring in Spain, in particular in Barcelona and Madrid. And the question on everyone’s lips is what is happening to make rents in Spain’s two major cities increase to such an extent that they are now even higher, in certain districts, than they were during the years of the real estate bubble?

According to the latest report from Idealista, the latest price rises have turned Barcelona into the regional capital where rental prices have increased the most in the last quarter, making it the most expensive capital (€17.40/m2), followed by Madrid (€13.80/m2).

The company VBARE Iberian Properties Socimi (VBARE), which specialises in the residential rental market and which will debut on the Alternative Investment Market (MAB) next month, has been busy analysing the rental market in Barcelona and Madrid with a view to identifying residential investment opportunities for subsequent lease. As such, its President, Fernando Acuña, is well positioned to explain the drivers behind this significant increase in rents in the two Spanish cities.

According to Fernando Acuña, the significant growth in demand, both from households, as well as from domestic and overseas investors, has not been accompanied by any increase in the supply, which is “still very limited”. The expert stresses that demand for housing is greater in Madrid and Barcelona, given that more jobs are being created in those cities, as the economy gradually recovers. He also points out that demand for housing is moving away from the ownership market towards the rental market and that this change is playing an important role in driving up prices.

The President of VBARE stresses that demand for rental properties is continuing to rise, not only because there has been a change in mentality (in favour of renting), but also because many of the people who need housing cannot afford to buy homes because they do not have the purchasing capacity (due to prohibitive mortgage conditions). He gives the example of the number of mortgages being signed – highlighing that, although the figures have been growing for 25 months – according to statistics provided by the National Institution for Statistics (INE) – they are doing so from a very low base. In fact, according to INE, 244,827 mortgages to buy homes were signed in 2015; meanwhile, in 2006, the year before the real estate bubble burst, 1,768,198 mortgages were constituted in total over rural and urban properties.

According to research performed by VBARE, several other factors are influencing the consolidation of the rental market across Spain, including: “short-term circumstantial reasons (high levels of unemployment, restricted (albeit improving) access to credit, loss of purchasing power, job insecurity affecting certain age groups susceptible to buying their first homes…) as well as medium and long-term structural factors (increase in labour mobility, a change in the traditional ownership mentality as the preferred option, decrease in the average size and nature of households…). (…).

According to the Socimi, another factor at play, particularly in Barcelona, is “the record tourism figures, which have turned some of the traditional rental stock into “seasonal rental properties”, especially in the centre, which has led to a rapid decrease in supply (…).

Original story:

Translation: Carmel Drake