The Bankinter Group and Sonae Sierra have finalised the process of creating and raising the capital for ORES Socimi, its real estate investment vehicle, and having it listed on the Alternative Stock Market (MAB by its initials in Spanish). This listed real estate investment company was created in December 2016, on a 50:50 basis by Bankinter and Sonae Sierra (50% of which is owned by Sonae and 50% by Grosvenor). In just over a month, Bankinter and Sonae Sierra successfully culminated the implementation of the Socimi (Spanish acronym for a 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 clients of the Bankinter’s Private Banking segment. Following said capital increase, these investors, together with some relevant institutional investors, hold 86% of the Socimi, while Bankinter Group holds over 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.
ORES Socimi was conceived as an investment vehicle for the Private Banking clients who demand significant and constant mid-term returns, which in this case is approximately seven years. In fact, this vehicle will distribute, in accordance with the rules governing Socimis, an average annual dividend - between 4% to 5%- obtained from the real estate assets rental income.
The Socimi’s ultimate objective is to invest nearly €400m, in connection with its borrowing capacity.
The ORES Socimi will invest in 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.
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 applied 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.
