Bankinter, Sonae Sierra launch Spanish Reit

Bankinter, Sonae Sierra launch Spanish Reit

Spain’s Bankinter group and Sonae Sierra have finalised the process of creating and raising capital for Ores Socimi, its real estate investment vehicle.

The new Spanish Reit is now listed on the Alternative Stock Market (MAB, 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).

Ores Socimi carried out a capital increase of €196.6m in December last year, which was mainly subscribed by clients of the Bankinter’s private banking segment.

Following the 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.

The Spanish Reit 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 Spanish Reits, an average annual dividend – between 4% to 5% – obtained from the real estate assets rental income.

Ores Socimi’s ultimate objective is to invest nearly €400m, in connection with its borrowing capacity.

It 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.

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.