At the end of January, an intimate group of investors were gathered in Madrid in an Editorial Breakfast organised by Iberian Property, which counted with the support of Clifford Chance, to discuss the listing alternatives for Spanish REITS.
The debate also addressed the growth capability provided by the alternative markets. In other words, wether alternative markets are prepared to sustain the SOCIMIs expansion or not.
Javier Mérida, Managing Director at P3 Spain Logistics Parks, shared his expertise in this matter and recalled that as of the constitution date of the P3 SOCIMI they had only 70,000 sqm of logistics space under management, and the regime supported their exponential growth to currently having more than 850,000 sqm.
From P3 Spain Logistics Parks, the balance of the years being a SOCIMI is positive but explaining the associated risks to investors is still complex. The share price many times does not reveal the value of the company, and there can even happen that all of sudden the majority of investors abandon their positions forcing the company to get delisted, which in the long term is a very relevant risk.
Besides the normal activity in terms of entrance or abandonment of the regime, the movements between markets were also a topic of debate during the Editorial breakfast. For the effect, Raquel Hernández, Head of M&A Finance at P3 Spain Logistics Parks, shared the SOCIMI experience related to its recent migration from BME Growth to Portfolio Stock Exchange.
She confessed that being among the pioneers is always challenging, since there is some uncertainty related to the process, the need to properly explain to investors the shift, and the risk of incurring in an overly extended period of adjustment.
“We were lucky to find in Portfolio Stock Exchange a partner that would underline the steps throughout the process, and always provide transparency on the risks associated to each phase. Seizing the opportunities in the growing market offers a definite advantage – a more streamlined process with fewer intermediaries. This allows us to carefully select services that genuinely enhance our operations, cutting out redundancies and optimizing cost efficiency”.
See here this event SPECIAL STORY
