Spain's Quabit unveils plans for €500m REIT

Spanish property firm Quabit has unveiled plans to launch a listed real estate investment trust with €500 mln worth of assets through an initial public offering.

Quabit said it is working with Spanish bank Santander to prepare the listing which is expected to be completed before year-end. The new company would invest in both residential and commercial assets, the company added.

Law firms Linklaters and broker Knight Frank are advising the company.

'In these years we have demonstrated that we are an example of transparency. This, coupled with our experience and market knowledge, will make our project very interesting for investors,' commented Félix Abánades, presidente of Quabit Inmobiliaria.

Foreign investors looking to enter the Spanish property market are increasingly opting for tax-efficient REIT structures to make their first move.

Earlier this week Merlin Properties debuted on the Spanish stock exchange with the largest listing ever of a European real estate investment trust (REIT) while Spanish advisory firm Rodex, controlled by listed group Alza Real Estate, is also believed to be planning an IPO at the end of June. The company aims to raise around €400 mln.

News of Quabit's IPO follows the listing in March of Hispania Activos Inmobiliarios, which currently has a market value of about €530 mln. The REIT, managed by investment manager Azora, received commitments from a number of cornerstone investors and other players including Quantum Strategic Partners, Paulson and Co, Moore Capital Management, APG, Cohen & Steers and the Canepa group.

Similarly, Spanish family-owned property company Grupo Lar’s newly-launched Socimi raised around €400 mln from the issue of 40 million new ordinary shares at a price of €10 per share. Lar Espania Real Estate Socimi currently has a market value of €417 mln.

‘Recent regulatory changes to the REIT structure in Spain have made these vehicles very attractive and today these structures strongly contribute to the investor-friendly climate that Spain is trying to foster,’ commented Wynn Williamson, a former director of Aguirre Newman and founder of Aura Asset Management.

Williamson believes the REIT market’s potential for growth is enormous. ‘Several other Socimis are expected to launch in the next few months,' he added.