Bankinter and Sonae Sierra launch their new Socimi on the Alternative Stock Market
The bank and Sonae Sierra have culminated the launch of their real estate investment vehicle.
ORES Socimi has raised 196,6 million euros that will be invested in top rate real estate assets, in particular retail high street and retail parks.
The Bankinter Group and Sonae Sierra have finalised the process of creating ORES Socimi, its real estate investment vehicle, raising capital and having it listed on the Alternative Stock Market (MAB as per its initials in Spanish). Bankinter and Sonae Sierra created this listed real estate investment company (REIT) in December 2016, whereby 50% of the company is owned by Sonae and the other 50% by Grosvenor. In just over a month, Bankinter and Sonae Sierra successfully formed the Socimi (the Spanish acronym for ‘REIT’) and had it listed on the MAB stock market.
ORES Socimi entered this market after it carried out a capital increase of 196.6 million euros in the same month of its creation. This capital increase was mainly subscribed by Bankinter private banking customers. As a result, these investors and certain important institutional investors now hold 86% of the Socimi, while Bankinter Group holds more than 10% and Sonae Sierra, 3.75%.
ORES Socimi’s share capital is made up of 196,695,211 shares, each with a par value of 1 euro.
ORES Socimi was conceived as an investment vehicle for the bank’s private banking customers in search of constant middle-term returns (which, in this case, is approximately seven years). In fact, in accordance with the rules governing socimis, this vehicle will distribute an expect average annual dividend – between 4% and 5% – obtained from the real estate asset rentals.
The Socimi’s ultimate goal is to make an investment of close to 400 million euros, linked to its borrowing capacity.
The ORES Socimi will invest in well-located commercial real estate assets (and not residential assets) with mainly in the principal cities of Spain and Portugal. About 65% of the assets will be located in Spain, and the rest in Portugal.
Main assets
The main investment focus will be on hypermarkets and supermarkets, retail parks, retail high street, in addition to the so-called stand-alone units, in other words single assets with long term rentals and solvent tenants. Shopping centres will not be included in the asset portfolio.
The investment and management strategy will be based on the standard policy of prudence and rigor implemented by both the Bankinter Group and Sonae Sierra. The latter will be in charge of the property management of the assets and of the company’s administrative management
The company’s Board of Directors comprises Fernando Moreno, Bankinter’s head of commercial banking and president of the Socimi; Íñigo Guerra, Bankinter’s head of investment banking; Alexandre Fernandes from Sonae Sierra; and Javier Nieto Jáuregui and Javier Sánchez as external board members.
About Bankinter:
Bankinter (www.bankinter.com) is the most profitable bank in the Spanish financial system, and also one of the most solvent. With an asset volumes of 67 billion euros, it is the seventh largest in the Spanish market. In 2016, it had record profits of 490 million euros, 30% more than in the previous year, thanks to the growth of recurring revenue business, based on the differential segments which Bankinter favours, such as private banking or corporate banking. This increase was due to a 6% increase in lending, to a total of 46.,8 billion euros in Spain (without including Bankinter’s business in Portugal); and to retail financing (deposits, funds and other saving or investment products), which increased 17% in the Spanish market, to a total of 40.4 billion euro.
About Sonae Sierra:
Sonae Sierra, (www.sonaesierra.com) is an international company devoted to serving the needs of investors in the retail real estate sector. The company operates through 13 corporate offices providing services in countries as diverse as Portugal, Germany, Algeria, Brazil, Columbia, Spain, Greece, Slovakia, Italy, Morocco, Russia, Romania, Tunisia and Turkey. Sonae Sierra is the owner of 45 shopping centres with an Open Market Value of over 6 billion euros, and manages or leases 81 shopping centers with more than 2.3 million square metres of Gross Lettable Area (GLA) and about 9,000 tenants. At present, Sonae Sierra has 12 projects under development, including 4 for third parties, and 6 new projects in the pipeline.