SOCIMI consultancy: comprehensive consultancy for listed real estate companies

Gesvalt, Real Estate Advisor of reference for SOCIMIs

Gesvalt has become the real estate advisor of reference for most of the SOCIMIs (Reits) consolidated in the market and for many that are in the process of being set up.

Having an independent real estate advisor in the asset valuation process, as well as in the valuation of companies, is key to providing solvency and transparency, providing the greatest comfort and generating confidence in the eyes of the regulator, investors and owners. The conclusions of this process will be decisive when it comes to making decisions, both in establishing the acquisition price and in designing the SOCIMIs' Business Plan, as well as in supporting their strategy.

What is a SOCIMI and what are its requirements?

Definition and tax advantages of SOCIMIs

A SOCIMIs is a listed public limited company whose main object is the acquisition, development and refurbishment of urban real estate for leasing, directly or indirectly.

This is the Spanish version of REITs (Real Estate Investment Trusts), adapted by Law 11/2009 and reformed by Law 16/2012. The tax advantages of these companies include:

Legal and financial requirements for incorporation

The legal and financial requirements that SOCIMIs must meet in order to be incorporated are based on:

Minimum share capital: 5 million, fully paid up, either in cash or through contributions of real estate.
Exclusive corporate purpose: engage solely in the acquisition, development and leasing of urban real estate, and/or participation in other SOCIMIs or equivalent entities.
Composition of assets and income: at least 80 % of assets must be invested in urban rental property or similar entities, and at least 80 % of income must be derived from rentals or dividends from SOCIMIs. A maximum of 20 % is allowed for other activities.
Mandatory profit sharing:
- 100 % of dividends received from other SOCIMIs or similar entities.
- At least 50 % of capital gains realised on the sale of real estate owned for more than three years.
- At least 80 % of other profits (e.g. rental income).
Minimum permanence of assets: properties intended for rental must be maintained in that activity for at least three years in order to retain the special tax regime.
Share price and type of shares: the shares must be admitted to trading on a regulated market or multilateral trading facility (such as BME Growth or the Continuous Market) and must always be registered.

Difference between SOCIMIs and other real estate investment structures

Unlike real estate investment fundsSOCIMIs are listed companies with shares on the stock exchange, which brings increased liquidity, transparency and regulatory oversight.

Compared to direct investments in real estate, SOCIMIs allow investors to access the real estate sector without the need for large outlays or mortgage debt; they also offer professional management, diversification and lower liquidity risks.

Moreover, compared to traditional REITs (e.g. American REITs), SOCIMIs are equivalent in their structure and favourable taxation, but adapted to the Spanish regulatory framework.

Gesvalt's services in advising SOCIMIs

Gesvalt has become an advisory partner for many consolidated SOCIMIs and those in the process of incorporation. It provides solvency and transparency to regulators, investors and owners, providing decisive support in establishing prices, business plans and corporate strategies.

Periodic valuation of real estate assets according to regulation

At Gesvalt, we carry out periodic asset valuations in compliance with international standards such as RICS Valuation Standards, with technical and commercial recognition.

Regulatory compliance support and reporting obligations

We guarantee transparency before regulators through solidly documented technical reports that comply with the required standards, as in the case of GENESIS R.E.I.T SOCIMIs, S.A. for whom we issue official valuations under RICS regulations for the market EURONEXT.

Technical and market reports for investors and regulators

For the preparation of our technical reports, in addition to providing a detailed real estate and financial Due Diligence, necessary for the IPO and before an audit, we analyse the economic environment taking into account variables such as Euribor, house prices or the IRAI index, which are key to informed decisions.

Support in incorporation, issuance, extension and IPO processes

We accompany SOCIMIs from the formation phase through to listing on markets such as BME Scaleup, Portfolio SE or Euronext, with services including structuring, due diligence, asset valuation and partnership.

Financial reporting aligned with IFRS and BME Growth requirements

Gesvalt, provides analysis and financial due diligence to produce reports aligned with the IFRSand to prepare sound documentation that enables the SOCIMIs meet the demands of markets such as BME Growth,the EU's information policy, guaranteeing transparency and quality of information.

Why count on Gesvalt as a partner for your SOCIMIs?

Proven experience in advising SOCIMIs since their inception

At Gesvalt, we have been advising SOCIMIs for more than 16 years, both for those that are already consolidated and those that are in the process of being set up. Our participation in emblematic projects such as the IPO of AC Residencial in Portfolio SE, GESRENTA BCN in BME Scaleup and Round Robin on Euronext or Portfolio SE has made us a benchmark consultancy in this field.

Multidisciplinary team: appraisal, technical, legal, financial

At Gesvalt we have a multidisciplinary team which integrates specialists in real estate valuation, technical analysis, legal advice and financial consultancy. This combination allows us to offer a comprehensive advice to SOCIMIscovering everything from the valuation of assets and companies to their preparation for listing.

Methodology compatible with regulator and auditor requirements

We apply methodologies aligned with international standards such as RICS, IVS and IFRS,the company complies with all the requirements of BME Growth, Euronext and other markets. Our processes are designed to facilitate the work of auditors and ensure the transparency demanded by regulators.

Auditable, defensible reporting tailored to institutional investors

Our reports are auditable and defensible,the new guidelines, prepared with technical rigour and tailored to the needs of institutional investors. This translates into trust, credibility and solid support for the strategic decision-making of your SOCIMIs.

Types of SOCIMIs we advise

SOCIMIs listed on BME Growth

Our advisory services to SOCIMIs include asset and company valuation, due diligence and technical support for stock market listing.

SOCIMIs such as AP67 SOCIMI S.A., and VERACRUZ PROPERTIES SOCIMI, S.A. trusted us with their incorporation into the BME Growth market.

Family or single-asset SOCIMIs

We also offer advisory services to simpler SOCIMIs, family or single-asset focusedwho require support in the initial stages of setting up, structuring and valuing their real estate assets.

Real estate investment vehicles under conversion

We offer advice to real estate investment vehicles that are being transformed into SOCIMIs,we accompany them in the preliminary analysis, structuring, due diligence (technical, financial, accounting), asset and company valuation, as well as in the preparation of their market launch.

SOCIMIs with assets in specialised sectors: residential, logistics, hotel, etc.

Our client portfolio also includes SOCIMIs in specialised sectors such as residential, logistics and hotel sectors, providing them with support in both valuation and IPO strategies.

Success stories in advising SOCIMIs

Learn about our achievements:

The valuation of the first SOCIMIs to be listed on Euronext, Portfolio and BME Scaleup.

The launch of the first social SOCIMIs.

The incorporation of the first SOCIMIs with assets outside Spain.

Advising the most renowned international real estate funds.

Frequently asked questions on SOCIMIs and their management

Is it mandatory to value the assets of a SOCIMI annually?

SOCIMIs often carry out annual valuations of their assets, however, this is not a requirement.

What tax advantages does a SOCIMI have over a real estate SL?

SOCIMIs enjoy a 0 % corporate income tax rate and ITP and AJD rebates, advantages that an SL real estate does not offer.

What is the role of the independent advisor?

The independent adviser ensures the transparency and rigour in valuations, reporting and compliance, providing confidence to regulators and investors.

Can I transform an asset-holding company into a SOCIMI?

Yes, an asset-holding company can become a SOCIMI by complying with the legal, tax and listing requirements established by law.