Bankinter Investment SGEIC, Bankinter's alternative investment management company, together with Sierra, a multinational company in the real estate sector, have structured ORES Germany, an alternative investment vehicle aimed at investments in retail space in the German market, which will be listed on BME Scaleup.
ORES Germany will be listed in the form of a listing, initially with the shareholders present in its share capital. This socimi, which will be listed with a valuation of 107.5 million euros, was promoted in November 2023 by Bankinter Investment SGEIC and Sierra. Bankinter Investment owns 15% of the company, Sierra 3%, and the remaining 82% is in the hands of Bankinter clients.
For the listing, the Spanish market BME Scaleup has been selected after considering several options both in Spain and in Europe. The reasons for this choice include the innovation of the market, the backing of the BME group (SIX), the cost, the absence of a minimum initial capitalisation limit and a minimum free float in the market.
ORES Germany has accumulated an investment volume of approximately €200 million and has a holding period expiring in five years. Its portfolio of eight retail assets is divided into four supermarkets and four home improvement stores, and is characterised by being defensive and resilient to various economic cycles. All assets have long-term leases with leading German operators such as EDEKA, REWE and OBI.
EDEKA is the leading supermarket chain in Germany with more than 11,000 shops. REWE has an international presence with more than 6,000 shops, and OBI, with more than 50 years of experience, is a leading operator in the German DIY sector.
As the companies point out, the grocery sector is considered defensive due to its staple product offering, maintaining consumption in physical shops due to personal product selection, immediacy and access to fresh products. In the do-it-yourself-home sector, Germany is one of the countries with the largest presence, driven by the interest in home renovation and the increase in home ownership and the rising cost of labour.
With this socimi, Bankinter Investment has entered the German market, which is also strategic for Sierra in the field of real estate investment.
ORES Germany's assets are located in urban centres with significant populations, consolidated areas and high rental rates. Bankinter Investment will manage the vehicle, while Sonae Sierra will manage the portfolio in the German market.
The assets were already acquired in operation and despite some minor investment in repositioning, the alternative investment vehicle has distributed, in less than six months, a distribution via issue premium of 3.25% of the invested capital. With this Socimi, Bankinter Investment has entered the German market, which is also strategic for Sierra in the field of real estate investment.
More than 820 million invested by the two partners.
Since 2016, Bankinter Investment and Sonae Sierra have structured and managed five investment vehicles:
- ORES (2016): Socimi of retail assets in Spain and Portugal (supermarkets, retail parks and premises).
- ORES Portugal (2019): Socimi (SIGI) focused on supermarkets and retail parks in this market.
- BIRE Serrano (2019): High-street retail space for lease, located on Calle Serrano in Madrid.
- BIRE Fortis (2021): Emblematic high-street commercial premises for lease, located in Puerta del Sol in Madrid.
- Atrium Saldanha (2022): Emblematic building in Portugal with mixed-use office, retail and parking.
Together, Bankinter Investment and Sonae Sierra have reached an investment volume of more than €820 million in more than 50 assets located in Spain and Portugal.
ORES Germany joins BME Scaleup with an initial capitalisation of EUR 107.5 million
ORES Germany is thus preparing to debut on the BME Scaleup market after receiving positive evaluations from the Market Coordination and Incorporation Committee. According to the committee, ORES Germany meets the necessary requirements for listing, making it the twelfth company to register an Initial Access Document on this market.
The Board of Directors has set the initial trading price of the shares at EUR 1,000, establishing an initial capitalisation of the company of EUR 107.5 million. This move reflects the potential of the company's real estate portfolio, consisting of a diverse range of commercial properties strategically located throughout Germany.
VGM Advisory Partners acts as Registered Advisor, playing a key role in the regulatory guidance and compliance of ORES Germany on its path to listing.
