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Advero acquires its first residential building in Madrid
10 January 2020 | Vanessa Sousa

ADVERO Properties Socimi, S.A., a Spanish REIT established in August 2017 with the will to facilitate access to rental housing in middle-income areas of Spain, formalised the acquisition of the company’s first building in Madrid on December 27, expanding the company’s portfolio to 6 assets.

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The building, located in the Tetuan district of Madrid, contains 17 apartment and 17 storage units. Built in 2009, the asset requires extensive renovations that are expected to take place between the months of January and September of this year, with units becoming rentable in the last quarter of 2020.

The transaction amounted to a total of 1.7 million euros after taxes and was financed through the company’s equity.

Furthermore, on the same date, the company formalised a mortgage loan with Bankinter for a total of 2.3 million euros to finance this last asset’s renovation works and new transactions. The terms of the new loan include a fixed interest rate of 1.9% and a maturity of 17 years. As of end of December 2019, ADVERO’s financial debt before the deployment of this new credit line represented 12% of the company’s asset value.

With this latest acquisition, ADVERO currently has 93 apartments under management, with a annual pro forma income estimated in 750 thousand euros.

ADVERO began its first asset acquisitions in April 2018 and, prior to the acquisition of this last asset, the company had 5 buildings within its portfolio with a total of 76 apartments located in municipalities within the first belt of Barcelona (Rubí, Sabadell, and Terrassa). The acquisition of ADVERO’s first 5 assets amounted to a total investment of 8.5 million euros and a gross asset value of 13.6 million (representing a 60% asset appreciation), according to an appraisal conducted by Savills Aguirre Newman on June 30, 2019. This valuation places the company’s NAV/share at 8.02 euros, not taking into account the potential value generation the company can accomplish with this latest acquisition and the investment of the new available financial resources.

 

Press Released By ADVERO Properties Socimi