The Socimis are already trading at big discounts of 55%-65% to NAV due to rate hikes: BUY Colonial

Bankinter |The Spanish Socimis are facing a more than foreseeable downward adjustment to the value of their assets (GAV), in light of the hike in interest rates in the last few months and the potential recession. This decrease in the valuation of their portfolios will have an impact on accounting profit and on leverage, which could already be reflected in certain areas at end-year. Our analyst team’s view: Negative news,…

Merlin Properties

The big Socimis, Merlin, Colonial and Lar España, will pass the CPI rise on to tenants

Bankinter | Merlin, Colonial and Lar España foresee passing inflation on to their rents. They give assurances they will enforce contracts, just as they did when inflation was zero or in negative territory. Bankinter’s opinion: Good news for the sector, although it should be viewed with caution. We do not think the increase in inflation is going to be applied across the board. There will be some assets requiring negotiation with…

Eroski City

Spain’s Socimis Are Buying Up Supermarkets

Due to the resilience shown by the real estate sector during the pandemic, as well as tenant stability, Socimis have purchased supermarkets in Spain for an amount of 600 million euros so far this year. Mercadona and GM have sold portfolios of supermarkets for 180 and 152 million euros respectively. And there are operations pending for 200 million euros in the short term, according to real estate consulting firm CBRE.


Spanish SOCIMIs Could Suffer A Major Setback With A Tax Burden Of 15%

Even though SOCIMIS have played a leading role in the Spanish real estate market since 2013 , as a result of Covid-19, their market value has dropped to €21.268 Bn, a decline of more than 17% against the end of 2019. In addition, these vehicles have benefited from a tax regime adapted to that of traditional REITs. Now, however, the government could impose a tax burden of 15% on them, which would damage cash flow and increase the risk premium associated with investing in real estate assets in Spain, say Banco Sabadell analysts.


Merlin Properties

Merlin Properties Will Be A Socimi In Portugal When The Country’s Legislation Opens Up To EU Firms

Merlin Properties’ CEO, Ismael Clemente, said it will take advantage of Portugal’s socimi regime when the country’s legislation is open to the incorporation of the so-called ‘community passport’ for companies from other European countries. Clemente was speaking at the III Iberian REIT Conference. Merlin has been in Portugal since 2015. Together with Spain, it is the firm’s strategic market.

Testa aims to consolidate with its listing its position as property ‘giant’

Testa Delays Its IPO Due To Political And Market Instability

The shareholders of the Testa Residencial, Santander (37%), BBVA (26%), Acciona (20%) and Merlin Properties (17%), have finally chosen to list the Socimi on the MAB instead of making a public offer of part of its share capital. The reason behind the decision is the tensions in the financial markets over the last few days.

Spain's tourism

The Socimi Hispania becomes the biggest hotel owner in Spain

Hispania has become the sole owner of Bay Hotels & Leisure by acquiring Grupo Barceló’s 19.5% of the company for an agreed price of 172,4 million euros, according to a statement filed by the socimi with the Spanish stock market regulator. Hispania is now the largest hotel owner in Spain.

Socimis' boom

Socimis in Spain are experiencing a boom which is unparalleled in Europe

Almost 10 years after the big property bubble burst, Spain is once again showing how emotional it can get it with bricks and mortar in all its forms. And emotional is the word, because the ‘revival’ of the real estate sector – something which nobody was betting on three or four years ago – is so spectacular that not a day passes when there is not some sort of euphoric news emerging about it. Of course figures are figures and these are more than amazing. If we focus on the Socimis, the protagonists of the property market in this current phase, the truth is the numbers are really impressive.

Colonial's bid for Axiare

Colonial Joins Ibex 35 Index Ahead Of Becoming A Socimi

This coming Monday, Colonial will join the Ibex 35, meaning that Spain’s two biggest socimis will now be represented in the selective index.  The weighting of Spain’s property sector in the index will also be increased as it continues its recovery.