Spanish bad bank Sareb's rented residential company Témpore Properties has gone public, raising roughly €150 mln in an initial public offering on Madrid's MAB stock market segment.
Témpore, which is converting to tax-efficient REIT status, has placed nearly 15 million shares at a price of €10.4 apiece. The stock surged 4.8% to €10.90 following its listing on Tuesday and had exceeded the €11 mark during early trading on Wednesday.
The company owns a portfolio of 1,383 residential units across the largest Spanish cities. It is targeting gross returns of 5% over the next three years, with an occupancy rate of 95%.
Commenting on the IPO, Sareb's CEO Jaime Echegoyen said: 'We have an obligation to evaluate new ways that allow us to expedite the fulfillment of our divestment mandate of the portfolio of assets that we buy.'
Tempore CEO Nicolás Díaz Saldaña said that the listing on MAB is 'the first milestone of a company that plans to become a benchmark in the rented residential investment market.'
In tandem with the IPO, Tempore has signed a framework agreement with Sareb to continue to receive new residential assets from the parent group over the next three years.
