The number of new listed socimis continues to grow. These specific companies for investment in urban real estate, which now number more than a hundred and are expected to make more jumps to the stock exchange in the coming years, continue to energise the Spanish market. Their flexibility in terms of taxation, ease of listing and shareholder guarantees are behind their success.
Since their regulation in 2009, they have become an attractive investment instrument for those interested in the real estate sector. Through their listing on the stock markets, these companies can raise capital and diversify their sources of financing; gain greater visibility and access to a wide range of investors; and obtain the necessary resources to expand their asset portfolio and profitability.
The Sociedades Cotizadas Anónimas de Inversión en el Mercado Inmobiliario are the Spanish version of REITs, an investment vehicle that emerged in the United States in the 1960s and was later implemented in Europe.
The evolution of socimis in Spain has been marked by specialisation by asset type. The emergence of socimis concentrated in specific real estate segments, such as hotels or offices, allows for more efficient management and makes the company more interesting for large international funds to entrust their money to.
Main advantages of investing in socimis
Investing in socimis can be beneficial for investors for the following reasons:
Portfolio diversification: Socimis allow investors to access the real estate market in a diversified manner. By investing in shares, investors can gain exposure to different types of real estate assets, such as offices, shopping centres, hotels or homes, without having to purchase properties individually.
Profitability and dividends: these companies are obliged to distribute at least 80% of their profits as dividends, which makes them an attractive vehicle for investors seeking recurring income. In addition, the professionalised management of socimis can generate attractive returns through asset appreciation and asset rental.
Liquidity: by being listed on the stock exchange, the shares of socimis are liquid and tradable. This allows investors to buy or sell their shares at any time, providing flexibility and agility in managing their investments.
Socimis can operate on different types of stock exchanges.
The main ones are presented below:
BME Growth,
Formerly called MAB, it is a trading platform aimed at smaller, growing companies. It offers a more flexible regulatory framework than the Continuous Market and provides socimis with an option to access the capital markets with lower entry requirements.
It is a parallel market to the stock exchange, promoted and organised by Bolsas y Mercados Españoles (BME) and supervised by the Comisión Nacional del Mercado de Valores (CNMV). It is aimed at small-cap companies seeking to expand, with tailor-made regulation designed specifically for them.
A company that is ready to go public on BME Growth has achieved a high degree of organisation and control. And above all, it has gained the confidence of investors in its project.
Euronext
It is one of the main European stock markets and in some of its conditions it is more lax than BME Growth. For example, one of its incorporation alternatives is less restrictive as it does not require a disclosure requirement, a fundamental option for certain personalised vehicles that have not opted for the socimi regime because they do not want to open their shareholding to other investors.
Some companies may be interested in the Parisian Euronext for the image of being listed on a larger market, with a longer track record on this investment vehicle and for the visibility to European investors.
Euronext is a pan-European stock exchange with a presence in several countries, including France, Belgium, the Netherlands, Portugal and Ireland. By listing on Euronext, socimis have access to a wide range of investors and a more geographically diversified market, which can increase their visibility and attractiveness to international investors.
Portfolio Stock Exchange
With 100% Spanish capital and recently created, it has the ambition to be the European Nasdaq. This stock exchange seeks to differentiate itself from its competitors by digitising the entire process of issuing and managing the life cycle of the instrument, simplifying the process by saving costs and time by eliminating requirements and intermediaries. It also stands out for its more lenient listing requirements.
The first socimi to be listed on this stock exchange was Round Robin, which specialises in the purchase of real estate through the auction system, and has been backed by the advice from Gesvalt.
How Gesvalt helps
Gesvalt has become the real estate advisor of reference for most of the SOCIMIs consolidated in the market and for many that are in the process of being set up.
- Real estate consultancy and advisory services in the IPO of the socimi.
- Preparation of real estate and financial due diligence of the socimi.
- Valuation of all the SOCIMI's assets (under international RICS standards).
- Valuation of the Company with a view to market entry.