Spanish financial services company Bankinter and international retail property specialist Sonae Sierra have finalised the capital raising for ORES Socimi, their joint venture real estate investment vehicle, and listed it on the alternative stock market MAB in Madrid.
The Socimi (the Spanish acronym for REIT) has raised €19.6 mln which will be invested in commercial real estate assets, with a focus on high street retail and retail parks, according to Sonae Sierra. The capital increase was mainly subscribed by clients of Bankinter's private banking segment, who hold around 86% of the REIT following the capital raising, with Bankinter holding over 10% and Sonae Sierra around 3.75%.
The listed real estate investment company was created in December 2016 via a 50:50 agreement between Bankinter and Sonae Sierra (50% of which is owned by Sonae and 50% by UK-based Grosvenor).
According to the joint venture parties, the Socimi’s ultimate objective is to invest nearly €400 mln, in line with its borrowing capacity. It will target commercial (not residential) real estate assets, with good locations mainly in the principal cities of Spain and Portugal. About 65% of the assets will be located in Spain, and the rest in Portugal.
The main investment focus will be on hypermarkets and supermarkets, retail parks, and retail high street assets, but not shopping centres. Sonae Sierra will be responsible for the property management of the assets and the company’s administrative management.
Sonae Sierra said that the vehicle planned to distribute an average annual dividend of between 4% to 5% obtained from the rental income of the properties held.
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.
Bankinter is the seventh largest bank in Spain and registered record profits of €490 mln in 2016.
