The triumph of the real estate lobby: there are nearly 30 SOCIMIs on the floor

26/09/2016

So far this year twelve SOCIMIs have jumped on the floors. The figure means that in less than a year have entered the market more than half of those currently listed on the MAB and 40% of those who do throughout the market. These investment companies that invest in property for rent and have benevolent fiscal conditions are monopolizing the Spanish stock market, especially the Alternative Investment Market, where they quote smaller companies and in recent years has drawn attention for cases Gowex like.
The last to enter the list has been Socimi Crown Estate, which began trading on August 3 with several office buildings in its portfolio and a capitalization of 109 million euros. A few days earlier, on July 29, GMP, the REIT of family Montoro opened. The old property had become SOCIMI two years ago, but lacked comply with the procedure of trading on the market. Society with a value of 42 euros per share has a market capitalization of 819.47 million euros. With this figure, the REIT's family acting finance minister stands by its size.
In this summer race IPO of SOCIMIs, on July 18 he began trading Quonia and made ISC Fresh Water Investment, which owns Sabadell offices three days earlier. In July, also he jumped into the parquet Vitribio and Asturias Retail and Leisure, which manages a shopping center in this region. The rest of the companies have begun trading this year are Hardley, Silvercode Investments, Jaba Inv. Real Estate, Investment Doalca, Hereb Habanera and Corpfin Capital Prime.
In total, the Spanish stock exchange listed 28 such companies that have entered the market since 2013. Of these, only five do on the continuous market while the rest is in the MAB. In fact, all who have begun trading this year have done this and this type of companies account for almost 40% of the number of companies in this market.
advantageous tax
One of the conditions to benefit from advantageous tax is that companies have to be listed, rent the assets that they own and have them for a period of at least three years. In contrast, these companies do not have to pay corporate taxes and have a 95% rebate on property transfer tax on the purchase of land for housing and promoting housing for rent.
The pressure of the real estate lobby in Spain made the legislation saw the light in 2009, but not sufficiently beneficial in terms of taxation did not have the desired results. It was following the amendment of 2012, which improved its taxation by exempting them from paying corporation tax, which gave wings to the creation of such societies. The new rules also softened the requirements for minimum capital required to set up a REIT to five million euros and reduced maintenance term property up to three years.
Under the acronym REIT listed companies are real estate investment trusts whose principal activity is the acquisition, promotion and rehabilitation of assets (housing, shopping centers, hotels, offices ...) then rent. This formula was bringing Spain a type of investment vehicle existing in other countries, which are called REIT (Real Estate Investment Trust) and originated in the United States 60.
In Spain, most of SOCIMIs listed on the market of small businesses, although there are some that have reached the size continuum. Among these are Axiare Heritage, Hispania, Lar, Merlin and Testa. The latter in the process of integration with Merlin after it was buying Sacyr their participation in that so far was his patrimonial society. This movement was the last of Merlin that has led him to be the largest REIT. In addition, the CNMC just authorize the purchase of Metrovacesa, an operation that established itself as the largest real estate of Spain with greater than 9,000 million euros assets.
Merlin has even reached into the Ibex 35 by returning to brick Major League bag seven years after the departure of Colonial seething of the crisis.